Tax Type
Retail Sales and Use Tax
Description
Medical equipment sales to hospitals and nursing homes
Topic
Exemptions
Taxability of Persons and Transactions
Date Issued
05-29-1991
May 29, 1991
Re: Request for Ruling: Retail Sales and Use Tax
Dear*********************
This will reply to your letter of February 13, 1991 in which you request a ruling on the applicability of the sales and use tax to sales of medical equipment by a client.
The questions raised in your letter have been previously addressed by the department in P.D. 89-178 (5/31/89) and its attachments. As indicated in the rulings, all purchases of tangible personal property by nonprofit hospitals and nursing homes are exempt from the tax. However, purchases of tangible personal property by for profit hospitals are taxable. Purchases of wheelchairs, braces, prosthetic devices, orthopedic appliances, and other durable medical equipment made by or on behalf of an individual using them or by a nonprofit hospital or nursing home also may be made exempt of the tax. However, purchases of such items by a profit hospital, licensed nursing home, home for adults or by a licensed physician for use in his professional practice are taxable unless purchased for a specific individual.
In addition, purchases of tangible personal property by certain nonprofit community health centers and specific nonprofit hospital cooperatives are exempt from the tax as provided in Va. Code §§58.1-608(7)(d) and 58.1-608(7)(1), copies enclosed.
I trust this answers your questions, but should you have others, please contact the department.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner