Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
300.0000 HOSPITALS, INSTITUTIONS AND HOMES FOR THE CARE OF PERSONS—Regulation 1503
300.0035 Empty I/V Container, Enema Bags and Syringes. Hospitals purchase empty intravenous solution containers and empty enema bags. In both cases, a pharmacist or nurse prepares or compounds the contents which are exempt medicines. The customer is customarily charged for the intravenous solution or enema preparation.
Sales or use tax applies to the hospital's purchases of empty intravenous solution containers and enema bags because there is no sale of the containers with the medicine to the patient. Such containers are part of a hospital's medicine handling system and never leave the hospital's possession until they are thrown out by the hospital. As such, the hospital is the consumer of such containers and tax will apply to the sales to the hospitals. This same analysis also would apply to syringes. 3/2/82.