California Enacts Exemptions for Diapers and Menstrual Hygiene Products

Effective January 1, 2020, California has enacted a sales and use tax exemption for diapers and menstrual hygiene products.

New Jersey to Phase Out Sales Tax on Medical Cannabis

New Jersey has enacted legislation that phases out the state sales tax on medical cannabis over a period of three years.

Medical System Subject to Tax in Missouri

The sale of a medical system was subject to Missouri sales and use tax since the system did not qualify as an exempt orthopedic or prosthetic device.

Prohibition on Taxation of Prescription Drugs Includes Medical Devices in Louisiana

The Louisiana Court of Appeal established that the state’s constitutional prohibition against taxation of prescription drugs also applies to medical devices.

Oklahoma Makes Amendments to Medical Equipment Exemption

Oklahoma has enacted legislation that makes changes to a medical equipment exemption.

Georgia Extends Exemptions for Nonprofit Volunteer Health Organizations

Georgia has enacted legislation that extends the sunset date for two sales and use tax exemptions for nonprofit volunteer health organizations.

Glucose Testing Meters, Test Strips, Lancing Devices and Lancets Exempt in Vermont

A retailer’s sale of glucose test strips, lancing devices, and lancets are exempt from Vermont sales and use tax since they were used in medical diagnosis or treatment.

Nevada Voters Approve Exemptions for Feminine Hygiene Products and Medical Equipment

In the November 6, 2018 midterm elections, Nevada citizens voted to approve two new sales tax exemptions.

Ohio Enacts Exemption Eyeglasses and Contact Lenses

Effective July 1, 2019, corrective eyeglasses and contact lenses are exempt from Ohio sales and use tax.

Orthotic, Prosthetic, Prostheses, Restorative Materials and Other Dental Devices Exempt in Louisiana

Effective October 1, 2017, the sale and purchase of many dental devices and materials became exempt from Louisiana sales and use tax. Formerly, this exemption was partially suspended.

Texas Offers Guidance on Partial Exemption for LLCs with Medical Purpose

In Texas, an LLC with a medical purpose may claim a partial sales and use tax exemption on purchases of taxable items, much like a joint venture or partnership.

Services Provided by Medicaid Managed Care Organizations Not Subject to Use Tax in Michigan After December 31, 2016

Michigan enacted legislation stating that medical services provided by Medicaid managed care organizations are no longer subject to use tax after December 31, 2016.

Health Center Services in Retirement Housing Complex Not Taxable in Arkansas

A health center that provides services to a retirement housing complex is not subject to Arkansas sales tax on the services it provides, as the services are incidental to residents’ membership in the nonprofit managed retirement community.

Colorado Enacts Sales & Use Tax Refund for Research & Development

Colorado enacted a sales and use tax refund for research and development purchases. More…

Medical Services Performed by Medicaid Managed Care Organizations Taxable in Michigan

Michigan has enacted legislation effective June 11, 2014, and retroactive to April 1, 2014, stating that medical services provided by Medicaid managed care organizations are subject to Michigan use tax. Per the legislation, “medical services” means medical services provided only…

California Delays Tax on Medi-Cal Managed Care Plans

Implementation of California’s Medi-Cal managed care sales tax program has been delayed pending federal approval. The implementation date has not yet been determined. The California Board of Equalization (BOE) will notify taxpayers once the program is approved. Medi-Cal managed care…

Iowa Amends Definition of Dietary Supplement

Iowa has amended the statutory definition of “dietary supplement” to keep the state in compliance with the Streamlined Sales Tax Agreement. “Dietary supplement” is defined as any product, other than tobacco, intended to supplement the diet that meets all of…

Preferred Drug Providers are Liable for Service Occupation Tax in Illinois

Illinois service occupation tax (SOT) applies to sales of prescription drugs to prescription drug providers (PDPs) under the Medicare Part D Prescription Plan because the drugs are not sold directly to the government. Sales to Medicare and Medicaid are exempt…

U.S. Supreme Court Declines to Review Tax on Medical Equipment Sold to Federally Insured Customers

The U.S. Supreme Court has denied a taxpayer’s request to review a decision by the Mississippi Supreme Court which held that a Mississippi law requiring a medical equipment retailer to pay sales tax on equipment sold to customers covered by…

New Mexico Enacts Deduction for Certain Dialysis Facility Services

Effective July 1, 2014, New Mexico has enacted a deduction from gross receipts tax for receipts from payments by the U.S. government or a U.S. government agency for medical and other health services provided by a dialysis facility to certain…

California Enacts New Tax on Medi-Cal Managed Care Plans

California has enacted legislation that imposes a sales tax at the rate of 3.9375%, effective July 1, 2013 through June 30, 2016, on the retail sale of Medi-Cal health care services sold at retail in the state. Counties, cities, and…

Hawaii Enacts Nursing Facility Sustainability Fee

Hawaii has created a provider fee that is imposed on health care items or services provided by nursing facilities in Hawaii, effective July 1, 2012 through June 30, 2013. The fee is based on the net patient services revenue of…

Medical Products With Single Use Label Exempt from Sales Tax in Florida

A Florida business that reprocesses, repairs, and refurbishes medical devices and equipment and sells them with a label indicating that the products are refurbished and intended for single use is exempt from Florida sales and use tax on sales of…

Prescribed Catheter and Delivery System Exempt from Florida Sales Tax

The sale of steerable guide catheters and clip delivery systems is exempt from Florida sales and use tax as they are prescribed medical devices used in the treatment of injury, disease, or incapacity of a patient that are temporarily or…