All sales of prescribed dietary supplements by a licensed practitioner or a mid-level practitioner are exempt from Kansas sales tax.
Medical Care Provided by Medicaid Plans Is Taxable in Michigan
Effective April 1, 2009, medical care serviced by a managed care entity, including Medicaid, is subject to Michigan use tax.
California Supplements Exempt if Used to Treat Obesity
California Regulations 1591 and 1602 have been amended to clarify that dietary supplements, when supplied by a physician as part of a weight loss program to treat the disease obesity, are not classified as food products and, therefore, exempt from…
Texas Taxability of Antibacterial Soap and Cleaning Products Discussed
Texas offers a sales and use tax exemption for over-the-counter drugs and medicines that are required to be labeled with a “Drug Facts” panel in accordance with FDA regulations. In order to qualify, these items must fit the following definition…
Georgia Suspends Taxation of Prescription Drug Samples Georgia
Governor Sonny Perdue has issued an executive order suspending the collection of sales and use tax on prescription drug samples distributed on or after September 1, 2008.
Washington Amends Rule Regarding the Application of Sales Tax and Business and Occupation Tax for Optometrists
Washington amended the rule to no longer include repair and replacement parts in the definition of “prescription lenses”. Thus, customers will no longer receive a sales tax exemption on these purchases. To claim a retail sales tax exemption under RCW…
Medical Instruments Provided for Surgical Implants Not Taxable in Missouri
Corporations that provide medical instruments to hospitals and surgical facilities in conjunction with the sale of medical implants are not subject to paying sales or use taxes on the instruments.
IL Regulation Amended on Medicines and Medical Appliances
Effective September 21, 2007, the Illinois Department of Revenue has amended the regulation on the Illinois retailers’ occupation (sales) and use tax treatment of medicines and medical appliances to clarify that the low rate of tax applies only to medicines…
Hearing Aid Supplies Exempt in Missouri
Along with hearing aides themselves, related hearing aid supplies that are sold in Missouri are exempt from sales tax.
Sales of Surgical Mesh Taxable in Missouri
In response to a taxpayer’s inquiry, the Missouri Department of Revenue issued a letter ruling stating that sales of medical products commonly known as “mesh” used by surgeons to repair hernias, are subject to sales or use tax. Section 144.010.1(10),…
Tennessee Exempts Prosthetic Devices
Tennessee has allowed a small metal device called a vena cava filter that is designed to protect against pulmonary embolisms to be exempt from their sales and use tax as a prosthetic device. The State defines a prosthetic as a…
Utah Taxability of Defibrillators and Related Services
In response to a taxpayer’s request for tax guidance, a private letter ruling was issued by the Utah State Tax Commission describing the taxability of defibrillators and other related services. If defibrillators and their repair or replacement parts are sold…
South Carolina Exempts Implants if Considered Prosthetic Devices
South Carolina indicated that it does not believe an implant that used to degenerate spine disease is exempt from sales and use tax. In order for the exemption to take place, the device must replace a “missing part” of the…
Pennsylvania Exempts Defibrillators and Related Accessories
Pennsylvania exempts defibrillators and related accessories from sales and use tax on the grounds that they alleviate physical incapacities. Therapeutic devices are “devices designed for the use of a particular individual to correct or alleviate a physical incapacity, and a…
Vacutainers Taxable in New Jersey
New Jersey sales and use tax regulations disqualified a laboratory’s purchases of vacutainers (sealed test tubes used to collect blood or other specimen samples) from exemption because they did not qualify as “nonreturnable containers” or “other wrapping supplies” as indicated…
West Virginia Deems Federal Employee Benefits to be Taxable.
The West Virginia State Tax Department has issued a notice stating that receipts from the Federal Employees Health Benefits Program (FEHBP) will be taxable under the health care provider tax. This release is consistent with an August 7th decision by…
Alabama Discusses Taxability of Medical Record Processing.
In a revenue ruling, the Alabama Department of Revenue discussed the taxability of medical record processing services. Fees that were related to intangible services were not taxable. Separately stated flat fees for record location, photocopying fees and handling fees were…
One time use supplies with restricted sale exempt from Florida tax.
In order to qualify for tax exempt status in Florida, medical devices and tools must meet two qualifications. First, the supplies must be intended for one-time use. Second, they must be required by federal law to contain a prescription legend…
New York packaging materials of sample drugs exempt.
The New York Division of Tax Appeals found that packaging materials used in the distribution of sample drugs by a pharmaceutical manufacturer were exempt from tax. This is in contrast to the Division of Taxation’s argument that the packaging was…
Nursing services not subject to Pennsylvania sales tax.
A taxpayer’s subsidiary provided temporary nursing services exclusively for six of the taxpayer’s nursing homes and long-term care facilities. The subsidiary’s employees also received benefits from the taxpayer. The Department of Revenue declared that, though the sale at retail of…
Cosmetic surgery subject to New Jersey tax.
As of September 1, 2004, the 6% gross receipts tax will be imposed on certain cosmetic medical procedures intended to improve someone’s appearance, but not to prevent or treat a medical condition. Specific procedures include, but are not limited to,…
Dental whitening products sold by dentists subject to New Jersey sales tax.
Because dental whitening gel is considered tangible personal property, dentists who sell the gel to their patients should collect and remit sales tax. Dentists should provide a Resale Certificate, Form ST-3, to their vendors when purchasing the whitening gel for…
Catheter samples subject to NY use tax.
Intra-aortic balloon pumps and catheters distributed to hospitals free of charge in New York as promotional materials were subject to New York use tax. Though hospitals are exempt organizations and medical equipment and supplies are exempt from sales and use…
Acute care, for-profit hospitals sales tax exemption in Connecticut.
Tangible personal property sold to acute care, for-profit hospitals for the purposes of constructing and equipping them are exempt from sales tax. The exemption is effective July 1, 2004, provided a certificate of need was filed by this date. (House…