Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2013
 

Sales and Use Tax Annotations


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425.0000 PRESCRIPTION MEDICINES—Regulation 1591

Annotation 425.0030

(a) GENERALLY

425.0030 Durable Medical Equipment (DME) Company. A question was posed regarding the charging of sales tax by a durable medical equipment (DME) company which is under contract to nursing homes, long-term care facilities, and intermediate care institutions. Items sold to these institutions are listed as "medicines" under Regulation 1591.

As long as these facilities qualify as "health facilities" under Regulation 1591(g), DME may sell to them free of tax by accepting either a resale (if some items are resold) or exemption certificate. (Regulation 1668.) Even though a facility does not qualify as a "health facility" the exemption may still be available if the purchaser complies with the other terms of Regulation 1591(a) e.g., furnished by a physician for treatment of a patient. 10/22/91.