Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2013
Sales and Use Tax Annotations
425.0000 PRESCRIPTION MEDICINES—Regulation 1591
(b) SPECIFIC ITEMS CLASSIFIED.
425.0514.800 Medifast 70 and Pro-Call 100. Medifast 70 and Pro-Call 100 are furnished by a medical doctor who maintains a medical weight control practice. These products are furnished to patients for the treatment of obesity. Both products are packaged in powdered form and are mixed with water for consumption. The label for Medifast 70 describes the product as a "modified fasting supplement," while the label for Pro-Call 100 describes the product as a "Balanced Dietary Food Supplement." The labels for these products also indicate that these products provide the user with a daily intake of 500 calories or less per five servings. Both products are not sold over the counter but are sold only to physicians.
Obesity is a disease and substances and preparations intended for internal application to the human body used to treat obesity qualify as medicines. These products are described as products to be ingested to reduce weight. Accordingly, the gross receipts from the physician's sale of these items furnished to his patients for treatment of obesity are not subject to tax. 1/26/89.