REQUEST LETTER

 

03-004

 

NAME

ADDRESS

PHONE

 

 

Re: Private Letter Ruling – Medical Equipment

Qualification as Exempt from Sales/Use Tax

 

COMPANY (COMPANY), previously known as COMPANY, is a manufacturer and service provider of highly sophisticated, state of the art medical equipment. We are one of the largest and most diversified suppliers of medical systems and solutions to the health care industry. On behalf of our customers, as well as the need to remain competitive, we hereby seek a ruling on a NAME ventilator system used to treat a complete range of patient categories from neonate and pediatric to adult.

 

We have received notification from The Commonwealth of STATE that this unit is exempt in STATE and it spurs us to inquire of all state if this therapeutic or prosthetic device, which may be used by particular individuals to correct or alleviate a physical, is exempt from sales and/or use tax. We are contacting your area of expertise in order to receive a legally binding decision on the sale of such units within your state. To aid in your decision-making, we are attaching (as Schedule 1) a full description of our NAME ventilator system.

 

The cost of this unit is generally between $$$$$$ to $$$$$$; we have been billing our taxable customer sales tax accordingly and remitted these taxes to the State. COMPANY was unaware of any exclusion from sales tax on the sale of such medical equipment or the use thereon until a customer brought this potential to our attention.

 

I appreciate your review of this issue and request that you contact me as soon as a decision is made, by either mail (self-addressed envelope enclosed), telephone or fax (see information below). If you have any questions, or need any further clarification, please do not hesitate to call.

 

NAME

 

 

RESPONSE LETTER

 

April 14, 2003

 

NAME

ADDRESS

 

 

RE: Private Letter Ruling – Taxability of NAME ventilation system

 

Dear NAME,

 

We have received your request for a private letter ruling concerning the sale of ventilation systems sold by COMPANY (“COMPANY”). Specifically, you ask if Utah has a sales tax exemption that applies to sales of this item.

 

The sale of a ventilation system for use in a medical facility would not qualify under either of two exemptions from Utah sales and use tax that are specifically applicable to medical items. Under Utah law, these exemptions apply only to the sale of medicine and home medical equipment or supplies, neither of which would include the NAME ventilation system.

 

Should you have any other questions, please contact us.

 

For the Commission,

 

 

 

Marc B. Johnson

Commissioner

 

MBJ/KC

03-004