Tax Type
Retail Sales and Use Tax
Description
Dialysis drugs and supplies
Topic
Exemptions
Taxability of Persons and Transactions
Date Issued
07-20-1984
July 20, 1984
Re: Request for Ruling/Sales and Use Tax
Dear ********
This will reply to your letter of May 16, 1984 in which you submit a request for a ruling on the application of the sales and use tax to hemodialysis and peritoneal dialysis drugs and supplies purchased by physicians.
You are correct that the controlled drugs purchased by physicians for use in hemodialysis and peritoneal dialysis are presently exempt from tax. Other items of tangible personal property used by physicians in dialysis treatment have been deemed taxable by the department though. However, Senate Bill 223, enacted by the 1984 session of the General Assembly and effective July 1, 1984, serves to exempt all drugs and supplies, used by physicians or their patients in dialysis treatment.
We are unable to provide an all-inclusive list of exempt items; however, it would be correct to say that all drugs and supplies that are purchased for and used in the actual treatment of patients would be exempt from tax. Such items include solutions, needles, syringes, tape, bandages, alcohol, and catheters. General purpose supplies such as face masks, paper towels, and trays as well as examination tables and instruments such as stethoscopes, forceps, and surgical scissors would be taxable though.
In addition, I feel that certain dialysis equipment purchased or leased by a physician was intended by the General Assembly to become exempt, from the sales and use tax beginning on July 1. Accordingly, a physician or patient may purchase or lease dialysis machines, artificial kidneys, and supplies attached to such equipment exclusive of the tax after that date. Such equipment and supplies could have been purchased or leased by patients exclusive of the tax prior to July 1, 1984.
Please contact us if you have any questions relative to specific items used by your clinic.
Sincerely,
W. H. Forst
State Tax Commissioner
Rulings of the Tax Commissioner