Following a letter ruling released on the subject in October, the Texas Department of Revenue has clarified that doctors performing exams for the state\’s Division of Workers\’ Compensation are not required to collect sales tax until October 1, 2023, to allow the Worker\’s Compensation industry to seek a legislative change.
Elective Ultrasound Service Found Taxable in California
California determined that the true object of a taxpayer’s prenatal imaging business was the images captured, not the ultrasound service.
Canada Announces Temporary GST and HST Relief for Face Masks and Face Shields
The Government of Canada announced a proposed measure to remove the GST/HST on supplies of face masks, respirators and face shields made after December 6, 2020.
PPE Sold to or Purchased by State of California is Exempt
Personal protective equipment (PPE) is temporarily exempt from sales and use tax when sold to or purchased by the State of California.
Medical Instruments Shipped with Tangible Personal Property Subject to Use Tax in Michigan
Michigan held that an out-of-state manufacturer of orthopedic implants was subject to use tax on medical instruments that it provides in conjunction with sales of the implants.
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.
Maryland Enacts Exemption for Hearing Aid Items
Effective July 1, 2020, Maryland has enacted a sales and use tax exemption for specified hearing aid items.
Washington Enacts Exemption for Feminine Hygiene Products
Effective July 1, 2020, Washington has enacted a permanent exemption for feminine 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…
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…