Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Sales and Use Tax Annotations


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P

425.0000 PRESCRIPTION MEDICINES—Regulation 1591

Annotation 425.0409

(b) SPECIFIC ITEMS CLASSIFIED.

425.0409 Hemodialysis Products.

(1) Mahurkar Kit. Described as a dual lumen polyurethane central venous catheter with kit containing items needed for catheter placement via Seldinger technique and used for short term use for kemodialysis or abperesis (pheresis).

Tubing and catheters are necessary and integral supplies used in conjunction with artificial kidney dialysis machines and are not subject to tax.

(2) Perm Cath Repair Kit. Described as a kit containing external catheter replacement section and accessory items to repair a damaged Perm Cath. Used to repair damaged external portion of Perm Cath, it is a "related supply" for hemodialysis and not subject to tax.

(3) Peri-Patch Pertoneal Catheter Extension Set. Described as a silicone rubber replacement section for repair of peritoneal catheters, one of three parts used to repair the damaged external portion of the peritoneal catheter. It is considered "related supplies" for hemodialysis and not subject to tax.

(4) Silicone Adhesive, Type A, Medical Grade. Described as silicone adhesive, sterile, provided in 8gm tubes, and used in the repair of various catheters (along with other components). It is a "related supplies" for hemodialysis and not subject to tax.

The exemption for "related supplies" and hemodialysis products is broad enough to include repair or replacement parts, described in 2, 3, and 4 above, since these parts are "products" and are necessary and integral to the proper functioning of the dialysis machine and other related items. This exemption only applies to parts used to repair or refurbish items the sale of which are not subject to tax. Tax applies to sales of repair or replacement parts for items the sale of which are taxable.

(5) Peri-Patch Glue Mold. Described as a hinged polypropylene mold with locking ring, one of three parts used to repair the damaged external portion of a peritoneal catheter.

(6) Beta-Cap Adapter. Described as a ultem adapter. Placed in the proximal end of peritoneal catheters to allow the catheter's connection to other mating parts (Beta-Cap Cap), injection sealing cap (transfer set).

(7) Beta-Cap Cap. Described as part Beta-Cap closure system which provides an infection barrier for peritoneal catheters when used with providone- codeine solution. Placed in the proximal end of peritoneal catheters to allow the catheters connection to other mating parts (Beta-Cap Cap) injection sealing cap (transfer set).

(8) Beta-Cap Clamp. Described as peritoneal catheter clamp. Used to "clamp-off" the external portion of a peritoneal catheter.

As with repair parts, with respect to items 5, 6, 7 and 8 above, the taxability of the sales of parts used to adapt an item to use depends in part on the taxability of the sale of the items being used. Sales of parts sold for the purpose of adapting catheters for use are exempt from tax if the catheter is put to exempt use.

(9) Infusion T. Described as a closed vascular access made of three components: a double beveled connector with protective claps, an injection, and 6" length of polyvinylchloride tubing. The infusion T connects to an A-V cannula to provide access to the blood system for the administration of meds, fluids, or blood sampling.

If the medicines, fluids, or blood sampling is administered as an integral part of the dialysis process, the infusion T used to administer them would be considered a "related supply" the sales of which are exempt from tax. If used in day to day patient care, the sales would be taxable. 12/31/90; 5/14/91.