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, therapeutic radiopharmaceuticals used to treat rheumatoid arthritis, cancer, lymphoma, leukemia, or related diseases, including prescription medicines used to relieve the effects of any such treatment;

(b) hypodermic needles, insulin, alcohol swabs, blood sugar testing strips, monolet lancets, dextrometer supplies, blood glucose meters, and other similar diabetic supplies sold to diabetics under the authorization and direction of a physician;

(c) prescription drugs dispensed to Medicare Part A patients residing in a nursing home are not considered sales to the nursing home and are not subject to the sales tax;

(c) prescription and over-the-counter medicines and medical supplies, including diabetic supplies, diabetic diagnostic equipment, and diabetic testing equipment, sold to a free health care clinic; and

(e) durable medical equipment and related supplies as defined under federal and state Medicaid and Medicare laws. (Revenue Ruling 10-2, South Carolina Department of Revenue, January 12, 2010)

Posted on January 28, 2010