Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2017
Sales and Use Tax Annotations
300.0000 HOSPITALS, INSTITUTIONS AND HOMES FOR THE CARE OF PERSONS—Regulation 1503
300.0055 Hospitals. When a hospital makes a charge for property administered to a patient and no separate identifiable charge for administration is made, the charge for the property is deemed to include the administration and the hospital is the consumer of the property. Hospitals whose billing policy is to furnish patients with nonitemized summary billings of nonadministered items are the consumers of such items, even though the patient may request and receive a separately itemized billing of such charges. Conversely, if the policy is to provide itemized billings for such property, the hospital is the retailer of the items furnished even if a summary billing is also furnished. The type of bill received by an insurer is of no consequence unless the insured patient receives no bill from the hospital, in which case the same distinction made for patient billings applies to the insurer's billings. 5/1/86. (Am. 2003–3).
(Note: Changes to Regulation 1503, effective June 1, 2001, replaced the "administered vs. nonadministered" concept with the new procedures specified in subdivision (b)(2).)