Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2013
 

Sales and Use Tax Annotations


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S

505.0000 SALES TO THE UNITED STATES AND ITS INSTRUMEN-TALITIES—Regulation 1614

Annotation 505.0820

(e) MEDICARE PROGRAM

505.0820 Medical Supplies Furnished Under Medicare. Medical supplies which are not "medicines" under section 6369, furnished to patients under the Medicare Act pursuant to contracts between the hospital and the United States Government, with the government making direct payment in whole or in part to the hospital for the supplies, are exempt sales to the United States Government to the extent payment is made by the government. If the supplies are furnished to the patient under the Medicare Act pursuant to contracts between the patients and the hospital, with direct payments made by the patients, the sales are taxable to the patients even though the patient mayreceive reimbursement from the California Medicare Assistance Program. The sale of such supplies to patients under California Medicare Assistance Program is subject to sales tax regardless of whether payment is made by the patient, county, or state. 8/22/66. (See Annotation 300.0030.)