Tax Type
Retail Sales and Use Tax
Description
Medical, dental, and optical supplies and drugs; Nurses and physician's assistants
Topic
Taxability of Persons and Transactions
Date Issued
12-29-1994
December 29, 1994
Re: Request for Ruling: Retail Sales & Use Tax
Dear*************
This will reply to your recent letter requesting a ruling on the tax status of sales of prescription drugs when the prescription is written by a licensed nurse practitioner.
FACTS
In 1991, the General Assembly passed legislation granting licensed nurse practitioners limited prescriptive authority. You question whether medicines and drugs when sold on prescriptions issued by such licensed nurse practitioners qualify for exemption from the retail sales and use tax under Code of Virginia §58.1-609.7(1).
It is my understanding that in 1992, the General Assembly granted similar prescriptive authority to licensed physicians' assistants. This ruling addresses prescriptions issued by such licensed physicians' assistants as well.
DETERMINATION
Code of Virginia §58.1-609.7(1) provides an exemption from the retail sales and use tax for "[m]edicines, drugs,...dispensed by or sold on prescriptions or work orders of licensed physicians, dentists, optometrists, ophthalmologists, opticians, audiologists,...." The exemption is limited to medicines and drugs only and does not include controlled devices, even those that may be prescribed by a physician.
While the statutory language does not specifically mention licensed nurse practitioners or licensed physicians' assistants, it appears that the intent of the exemption is to provide an exemption for prescription medicines and drugs generally. However, the general rule established by the Virginia courts is that exemptions from taxation must be strictly construed. As such, the department believes that to clarify that prescriptions issued by licensed nurse practitioners and licensed physicians' assistants are exempt from the sales tax, the statutory exemption should be amended.
It is my understanding that you have been provided the questionnaire (and applicable instructions) required for all legislation seeking an exemption from the retail sales and use tax and instructed to return the questionnaire to the department by December 30th. As with all legislation relating to exemptions from the retail sales and use tax, this legislation should be introduced by the patron no later than the first day of the legislative session, January 11, 1995.
If you have any questions about this matter, please contact***************.
Sincerely,
Danny M. Payne
Tax Commissioner
OTP/8847H
Rulings of the Tax Commissioner