34 Tex. Admin. Code § 3.284 - Drugs, Medicines, Medical Equipment, and Devices (Tax Code Section151.313)
(a) Definitions.
The following words and terms, when used in this section, shall have the
following meanings, unless the context clearly indicates otherwise.
(1) Appliance or device--An instrument,
apparatus, implement, machine, contrivance, implant, chemical, or other similar
or related product that does not achieve its primary intended purposes through
chemical action within or on the body, and that is not dependent upon being
metabolized for the achievement of its primary intended purposes.
(2) Brace--Any appliance or device that is
used on or attached to the human body, and that gives rigidity or support for
the purpose of correcting a physical ailment or defect.
(3) Corrective lenses--Any appliance or
device that is worn to correct or aid defective eyesight, such as eyeglasses,
contact lenses, or other visual aids that an ophthalmologist or optometrist
dispenses or prescribes.
(4) Dental
device--An artificial replacement of one or more teeth or a dental appliance
worn on the teeth to correct irregularities of growth or position. For the
purposes of this section, the term dental device does not include toothbrushes,
toothpaste, dental floss, mouth mirrors, or other devices used to prevent
cavities or plaque build-up or removal.
(5) Dietary supplement--A product that:
(A) contains one or more vitamins, minerals,
herbs, amino acids, or substances to increase caloric intake;
(B) is not represented as a food or the sole
item of a meal or the diet; and
(C)
is labeled or is required to be labeled "dietary supplement" or
"supplement."
(6) Drug
or medicine--A product that:
(A) is intended
for use in the diagnosis, cure, mitigation, treatment, or prevention of
disease, illness, injury, or pain;
(B) is applied to the human body, or that
humans ingest or inhale;
(C) is not
an appliance or device; and
(D) is
not food; or
(E) is labeled with a
drug facts panel in accordance with federal Food and Drug Administration
regulations.
(7)
Food--Material, usually of plant or animal origin, that contains or consists of
essential nutrients and is intended for human ingestion:
(A) for taste or aroma; or
(B) to satisfy the appetite, hunger, or
thirst.
(8) Hearing
aid--Any appliance or device worn to correct or aid defective hearing. The term
also includes an audio loop used by a person who is deaf.
(9) Hypodermic needle--A hollow needle
adapted for use with hypodermic syringes.
(10) Hypodermic syringe--A small syringe with
a hollow needle adapted for use in removing or injecting material beneath the
skin.
(11) Ileostomy, colostomy,
and ileal bladder appliance--An appliance or device that is surgically
implanted or formed to assist the human body in the elimination of natural
waste.
(12) Orthopedic
appliance--Any appliance or device designed specifically for use in the
correction or prevention of human deformities, defects, or chronic diseases of
the skeleton, joints, or spine.
(13) Prosthetic device--An item that is
artificial and replaces a missing part of the body, performs the function of a
vital organ or appendage of the human body, or is permanently implanted in the
body. Examples of prosthetic devices are heart-lung pumps, nasal gastric and
gastrointestinal devices, ureteral stents, urethral stents, and artificial
kidney machines, and related components and supplies.
(14) Therapeutic appliance or device--An
appliance or device that is designed to alleviate pain or for use during the
treatment or cure of human sickness, disease, suffering, or
deformity.
(15) Wound care
dressing--An item that absorbs wound drainage, protects healing tissue,
maintains a moist or dry wound environment (as appropriate), or prevents
bacterial contamination.
(b) Drugs and medicines.
(1) Insulin that is sold with or without a
prescription is exempt.
(2) Sales
or use tax is not due on the sale of drugs or medicines that are prescribed or
dispensed for humans or animals on the oral or written prescription of licensed
practitioners of the healing arts. Sales tax is due on the sale of all other
nonprescription drugs and medicines, purchased for use in the treatment of
animals, and the retailer must collect tax from the purchaser on such
sales.
(3) Sales or use tax is not
due on the sale of non-prescription drugs or medicines. A product is presumed
to be a drug or medicine for sales tax purposes if it is labeled or required to
be labeled with a "Drug Facts" panel pursuant to the regulations of the federal
Food and Drug Administration.
(4)
Sales or use tax is not due on the sale of wound care dressings.
(c) Dietary supplements. Sales or
use tax is not due on the sale of dietary supplements.
(d) Medical equipment.
(1) Sales or use tax is not due on the sale,
lease, or rental of medical equipment meeting the definition of a brace,
corrective lens, hearing aid, orthopedic appliance, prosthetic device, or
dental device. Sales tax is not due on replacement parts designed specifically
for such devices and appliances. With the exception of corrective lenses, a
prescription is not required.
(2)
Sales or use tax is not due on the sale of ileostomy, colostomy, or ileal
bladder appliances, related supplies or replacement parts that are designed
specifically for such appliances.
(3) Sales or use tax is not due on the sale
of hypodermic syringes and hypodermic needles used for medical
purposes.
(4) Sales or use tax is
not due on the sale of blood glucose monitoring strips.
(5) Sales or use tax is not due on the sale,
lease, or rental of hospital beds or their replacement parts. A hospital bed is
the type of bed used in a hospital for rest, recuperation, and treatment. A
hospital bed does not include an operating table, delivery table, examination
table, stretcher, or gurney. A prescription is not required.
(6) Sales or use tax is not due on the sale,
lease, or rental of the following items when used by the deaf. An exemption
certificate is not required for the purchase, rental, or lease of these items:
(A) hearing aids;
(B) specialized printing or signaling
equipment that the deaf use for the purpose of enabling communication by
ordinary telephone, including all materials, paper, and printing ribbons that
are used in that equipment;
(C) an
appliance or device, such as a light signal, that is used to adapt items such
as telecommunication devices for the deaf (TDD), telephones, doorbells, and
smoke alarms; and
(D) adaptive
devices or adaptive software for computers that deaf persons use.
(7) Sales or use tax is not due on
the sale, lease, or rental of the following items when used by the legally
blind. An exemption certificate is not required for the purchase, rental, or
lease of these items:
(A) a braille
wristwatch, braillewriter, braille paper; and
(B) braille electronic equipment that
connects to computer equipment, along with the necessary adaptive devices and
computer software.
(8)
Sales or use tax is not due on the sale, lease, or rental of the following
items when used by the legally blind, if an exemption certificate is provided
to the seller:
(A) a slate and
stylus;
(B) print
enlarger;
(C) light
probe;
(D) magnifier;
(E) white cane;
(F) talking clock;
(G) hardware and software that are necessary
to adapt a computer for a legally blind person to use; and
(H) harness for guide dog.
(9) Sales or use tax is not due on
the sale, lease, or rental of intravenous systems (IV systems) used in the
treatment of humans. The exemption includes related supplies and replacement
parts. Examples of IV system components and supplies include access ports,
adapters, bags and bottles, cannulae, cassettes, catheters, clamps, connectors,
drip chambers, extension sets, filters, in-line ports, luer locks, needles,
poles, pumps and batteries, spikes, tubing, valves, and volumetric chambers. A
purchaser must give an exemption certificate to the seller stating that the
components and related supplies are for IV systems used in the treatment of
humans.
(10) Sales or use tax is
not due on the sale of eating utensils, such as spoons, forks, or knives, that
are designed to facilitate independent eating and purchased for use by an
individual who cannot eat independently with conventional utensils because of
injury, disease, physical or mental disability, or advanced age. A purchaser
must give an exemption certificate to the seller to claim the
exemption.
(11) Sales or use tax is
not due on the sale, lease, or rental of therapeutic appliances, devices, and
related supplies specifically designed for those products when sold, leased, or
rented to individuals under a prescription of a licensed practitioner of the
healing arts.
(A) An individual purchasing,
leasing, or renting therapeutic appliances, devices, and related supplies under
a prescription must either provide the seller a written prescription or allow
the seller to receive the prescription directly from the licensed practitioner
of the healing arts. The seller may exempt the sale, lease, or rental by
keeping a copy of the individual's prescription in the seller's records. An
exemption certificate from the purchaser is not required.
(B) A hot tub, spa, or similar appliance
qualifies as a therapeutic appliance when prescribed for the purchaser by a
licensed practitioner of the healing arts. The patient must provide the seller
of the hot tub, spa, or similar appliance with a prescription, an exemption
certificate, and a signed statement on letterhead from the licensed
practitioner. The signed statement should specify the medical requirements for
the hot tub, spa, or similar appliance.
(C) Health care providers, such as doctors,
clinics, hospitals, nursing homes, or other institutions providing health care
or medical services to individuals owe tax on therapeutic appliances, devices,
and related supplies they use in providing nontaxable health care and medical
services. Unless the health care provider qualifies as an exempt organization
under Tax Code, §
151.309 or §
151.310, sales or use tax
must be paid by the health care provider on the purchase, lease, or rental of
all therapeutic appliances, devices, and related supplies.
Notes
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