The retail sale of tangible personal property is taxable in every state with a sales and use tax program. Since medicine and medical appliances, supplies, etc. are tangible personal property, they are subject to sales or use tax unless an exemption applies. Most taxing jurisdictions provide exemptions for medicine and certain medical supplies and appliances, although the items exempted and justifications for exemption vary from state to state. The tax status of a given product might depend on whether it is: (a) prescribed by a physician, (b) for the treatment of underprivileged or disabled individuals, (c) subject to the oversight of the Federal Drug Administration, or (d) distributed by a hospital or licensed care facility. Consequently, businesses operating in this industry are faced with an ever-evolving landscape of differing rules and convoluted definitions that can make one’s head spin and potentially lead to under or over remittance of tax.
Comments or questions may also be submitted to the featured sales tax specialist by viewing any of the linked posts (below) and using the on-page "Comment" feature (or other posted contact options), subject to disclaimer at bottom of page. Other contact options are also available through the blogger's associated Firm Profile page.
- California Medical Marijuana Retailers: Tax Update & Exemption Rules
- Sales & Use Tax Refund Opportunities: Durable Medical Equipment
- Medical Equipment Tax Change Opens Door: CA Regulation 1591
- Taxability of Medical Database Subscriptions in Arizona
- Medical Industry Tax Updates: Sales & Use Tax Updates #3
- Leases of Mobile Medical Imaging Equipment - May Provide Tax Refund Options
- Multistate Sales & Use Tax Updates Related to the Medical Industry
- Where and When Are Medical Services Taxable?
- Medical Industry: Sales & Use Tax Multi-State Review - March 2016
- Which States Tax Medical Devices?