Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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425.0000 PRESCRIPTION MEDICINES—Regulation 1591

Annotation 425.0148


425.0148 Medical Devices. The following applies to the sale of articles which are implanted in the human body:

(1) Difference between "implanted in the body" and "worn in the person:"

The term "worn in the person" is broader in scope than the term "implanted." The term "implanted" is generally accepted to mean the insertion or the grafting into the intact tissues of the recipient and usually requires some sort of surgical operative procedure. Devices which are "worn in" the body of the user are not necessarily implanted.

(2) Difference between "natural organ" and "natural part of the body:"

A "natural organ" is generally defined to be a differentiated structure performing some specific physiological function, such as a heart, an eye, or a kidney. The term "natural part" is much broader in scope and includes any part of the body whether or not such part constitutes a differentiated organ.

(3) "Medicine" as defined under 1591(b)(2) and 1591(b)(5):

Sections (b)(2) and (b)(5) of Regulation 1591 provide separate and distinct definitions of the term "medicine," and apply independently to the sale of the medical devices. Although sections (b)(2) and (b)(5) somewhat overlap in their scope, effective October 1, 1977, a medical device may separately qualify as "medicine" under one or both of these sections. A device which is "temporarily" implanted in the body does not qualify as an exempt medicine under Regulation 1591(b)(2). The same temporary device, however, can qualify as exempt "medicine" under Regulation 1591(b)(5) since this particular subsection does not require the device to be permanently implanted. 10/27/83.