Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2014
Sales and Use Tax Annotations
425.0000 PRESCRIPTION MEDICINES—Regulation 1591
(b) SPECIFIC ITEMS CLASSIFIED.
425.0724 Port-A-Cath. The Port-A-Cath is described as consisting of two-to-three components which are implanted in the body; they are the portal, the catheter and, depending on the model, a catheter connector. A huber, noncoving needle is used to access the port. The Port-A-Cath is permanently implanted into the body to maintain venous access. Without this system, the patient may suffer from collapsed veins making it impossible to receive any medication which would normally be injected into the vein. The brochure also describes the Port-A-Cath as a totally implantable device designed to permit repeated access to the venous circulation. The brochure also states the use of the product is indicated when a patient requires repeated venous access for injection or infusion therapy and/or blood sampling. The Port-A-Cath is sold primarily for the purpose of chemotherapy infusion.
To be considered as a "medicine", the prescription sales of which are exempt from sales tax, the item must be sold for the purpose of replacing or assisting the functioning of a natural part of the human body. The purpose of the Port-A-Cath is to provide venous access when repeated injections are prescribed. The natural function of the vein remains the maintenance of blood flow. Delivery of the chemotherapy agent into the vein may facilitate rapid dispersal of the vesicant drug, but rapid dispersal of drugs is not the vein's natural function. Sales of the Port-A-Cath system for drug infusion purposes are not exempt from tax. 6/12/89; 12/14/90; 2/20/91; 4/26/91.