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,…
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…
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…
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…
California’s Mariposa County Healthcare Authority sales and use tax expires June 30, 2004.
Effective July 1, 2004, the sales and use tax rate in Mariposa County, California will be 7.25%, down from 7.75%. Any collections of the MCHA sales or use tax after this date must be returned to the customer or forwarded…
Kansas does not exempt external defibrillators.
In a Kansas opinion letter it was decided that external defibrillators do not qualify as either \”mobility enhancing equipment\” or \”prosthetic devices\” and therefore are not exempt from tax.
Kentucky streamlined code exempts certain medical devices.
Changes to KRS 139.472 as a result of House Bill 293 broaden the exemption granted to medical items and clarify what items are included in the exemption.
Florida anesthesia equipment generally taxable.
Anesthesia equipment purchased for single-time use by a health care practitioner is subject to sales and use tax.
Michigan Nonlegend Drug Purchases Not Taxable
Michigan case Birchwood Manor, Inc. v Commissioner of Revenue found that the purchase of over-the-counter or \”nonlegend\” drugs for distribution to nursing home residents was exempt from use tax as a purchase of prescription drugs.
New Mexico to remove certain medical services taxes.
Effective January 1, 2005, receipts for commercial contract services or Medicare part C services when received from a health care insurer or managed health care organization may be deducted from gross receipts as long as the services are within the…
Florida blood collection tubes not taxable.
In Florida blood collection tubes are exempt from tax, provided they are used along with exempt hypodermic needles and syringes.
West Virginia emergency rule clarifies.
An emergency rule was issued in West Virginia to clarify that durable medical goods, mobility enhancing equipment and prosthetic devices sold by prescription to or for a patient are exempt from sales and use tax after December 31, 2003. This…
Florida taxability of medical products.
Medical products and devices with labels signifying one-time use by prescription only are exempt from Florida sale and use tax.
Massachusetts retrieval of medical records not taxable
Fees charged for the retrieval and transmission of medical records and health data to customers were exempt from Massachusetts sales and use tax.
Rhode Island CT kits taxable.
CT kits that were purchased by a for-profit laboratory did not fall within the range of tax exempt medicines, drugs, and devices because they were not prescribed to patients for their own use. Instead, the supplies were used in the…
Florida respiratory care products taxability discussed.
The health care practitioner is responsible for paying tax on physical and respiratory therapy equipment, provided that the equipment is not a one-time use prescription product or is not prescribed by a physician to be resold or rented to the…
Wyoming disposable medical supplies used by a laboratory exempt.
In Wyoming, supplies that were used by a clinical laboratory were exempt from taxation because they were disposable and because their use could be attributed to the diagnosis and treatment of patients. The laboratory is also a Medicare recognized health…
Florida for-profit nursing home electricity purchase exempt.
A for-profit nursing home in Florida which provides physical therapy services to its residents qualifies for a sales tax exemption for the purchase of electricity because the services that it provides are not commercial in nature. The physical therapy company…