Free flu vaccines that a pharmacy plans to offer to uninsured individuals would be exempt from Utah sales and use tax because the vaccines are for human use and are purchased by a medical facility. An exemption exists for amounts…
South Carolina Explains Exemptions for Medicines and Medical Supplies
The South Carolina Department of Revenue has issued an updated revenue ruling on the exemptions for certain medicines, prosthetic devices and medical supplies. The ruling explains how exemptions are applied for these items, including: (a) prescription medicine and prosthetic devices,…
Missouri Discusses the Taxability of Insulin Pumps and Home Blood Glucose Testing Products
An out-of-state company selling durable medical equipment and supplies was not subject to sales tax on its sales of insulin pumps. Missouri law provides and exemption for sales of insulin and sales of prosthetic or orthopedic devices. The insulin pump…
Free Flu Vaccines are Taxable in Iowa
In a policy letter, the Iowa Department of Revenue determined that the free distributions of flu vaccines are subject to Iowa sales and use tax.
Georgia Legislation Ratifies Exemption for Prescription and Clinical Drugs
Governor Sonny Perdue\’s executive order was ratified by the General Assembly of Georgia to suspend the collection of sales and use tax on…
Drugs Were Not Exempt in Kentucky as Prescription Drugs
The Kentucky Board of Appeals issued a ruling on the appeal of PCA-Corrections, LLC seeking to overturn sales taxes levied upon drugs supplied to inpatient rehabilitation and convalescent institutions by the Kentucky Department of Revenue. The Board held that the…
Soft Tissue Implants Not Exempt as Prosthetic Devices in Missouri
A taxpayers sale of soft tissue products were deemed to be sales of taxable tangible property and not exempt prosthetic devices. The soft tissue products are predominately used for the replacement of soft tissue in reconstructive surgeries. Missouri defines exempt…
Indiana Surgical Guides are Tax Exempt
A company manufactures surgical cutting guides, designed on a custom basis, to correct the injuries and deformities in the knee.
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…
Kansas Taxation of Blood Sugar Control Dietary Supplements Discussed
All sales of prescribed dietary supplements by a licensed practitioner or a mid-level practitioner are exempt from Kansas sales tax.
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…
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…
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…
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…
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…