Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2013
 

Sales and Use Tax Annotations


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P

425.0000 PRESCRIPTION MEDICINES—Regulation 1591

Annotation 425.0974

(b) SPECIFIC ITEMS CLASSIFIED.

425.0974 Wheelchairs, Crutches, Canes, and Walkers Purchased by a Hospital. A hospital purchases wheelchairs, crutches, canes, and walkers for the purpose of renting them to patients. Payment for the rentals is made by Medicare or by an insurer. The hospital may purchase the items for resale. If the item is rented or resold to a patient covered by Medicare, and Medicare makes the payment under Part A, tax will not apply because the sale will be an exempt sale to the United States. If the payment is made under Part B or by other insurers, tax will apply to the items resold or rented unless they are exempt as prescription medicines. Item billed under Medicare Part B are treated the same as any other sale. 10/16/79.