Responses
March 7, 1995 and June 16, 1995
Request
February 28, 1995
Utah State Tax Commission
160 E. 300 South
Salt Lake City, UT 84134
Dear Sir/Madam:
We would like to receive formal documentation on the taxability of our
equipment rental business.
Our company provides orthopedic rehabilitation products for the
extremities. These XXXXX devices are
part of an extensive rehabilitation program to enhance early recovery of motion
Additional facts are as follows:
1) The XXXXX units are further rented or sold
to patients and consequently billed to their insurance company, both private
and Medicare.
2) Our products are provided by prescription
only under the treatment program of a licensed physician, surgeon or
podiatrist.
3) Our products are externally applied to the
body, often fully worn by the patient.
Attached
is literature describing our products in greater detail. If you require further information please
call me at XXXXX. Thank you very much for your assistance in this matter.
Sincerely,
XXXXX
XXXXX
See
file for attached copies. (XXXXX, Revolution
XXXXX to Go Knee XXXXX and MultiLink Shoulder XXXXX) Copies of photographs and
descriptions of different devices provided by company.
Dear XXXXX:
We have received your request to receive formal documentation on the
taxability of your equipment rental business.
During the 1995 Utah
Legislative Session, a bill was passed that pertains to your request. However,
until the Utah State Tax Commission receives the final versions of bills
passed, we are unable to provide detailed information on 1995 legislation. More information will be available after
XXXXX, when we have received the final version of all bills passed by the
legislature and signed by the governor.
We will respond to your request as soon as we have received the final
version of the bill. Thank you for your
patience in this matter.
Sincerely,
Alice Shearer
Commissioner
TO: XXXXX, Director
FROM: XXXXX, Secretary
DATE: April 10, 1995
SUBJECT:Request for Advisory Opinion - NO. 95-011DJ
Attached is a request for an advisory opinion from XXXXX of U.S.
Ortho. Will you please review the
request of XXXXX for an advisory opinion regarding the taxability of their
equipment rental business.
Please prepare the response for signature by the Commission as per the
guidelines established by them.
Thank
you.
TO: ALICE SHEARER,
Commissioner
FROM: XXXXX
DATE: June 7, 1995
RE: Advisory Opinion
for XXXXX - XXXXX - Sales Tax Application to Sales or Rentals of XXXXX.
__________________________________________________________________
Auditing Division has prepared an advisory opinion for XXXXX of
XXXXX. I have reviewed this opinion
and am forwarding it to you for your review and signature.
Thank you!
Re: Advisory Opinion - - Sales or Use Tax
Application to Sales or Rentals of XXXXX.
Dear
XXXXX:
You
requested an advisory opinion as to whether the Utah sales or use tax applies
to your sales or rentals of XXXXX devices.
Our
research indicates as follows:
1. Utah Code Annotated Section 59-12-104(10)
exempts “sales of medicines.”
“Medicine,” as defined in U.C.A. Section 59-12-102, does not include the
products described in your request.
2. U.C.A. Section 59-12-104(37) eff. 7-1-95
provides exemption for:
“(37)
sales or rentals of home medical equipment and supplies:
(a) purchased or leased by, for, or
on behalf of a home patient: and
(b) used personally and exclusively
by the patient in the medical treatment of and existing disease or injury.”
3. U.C.A. Section 59-12-102(5) eff. 7-1-95
defines items qualifying for the exemption as follows:
“(5)
(a) ‘Home medical equipment and supplies’ means equipment and supplies that:
(I) a licensed physician
prescribes or authorizes in writing as necessary;
(ii) are used
exclusively to serve a medical purpose;
(iii) are generally not
useful to a person in the absence of illness or injury;
(iv) are appropriate for
home use; and
(v) are listed as
eligible for payment under Title 18 of the federal Social Security Act or under
the state plan for medical assistance under Title 19 of the federal Social
Security Act.
(b) 'Home medical equipment and
supplies' does not include equipment and supplies purchased by, for, or on
behalf of any hospital, clinic, doctor, nurse, or other health professional for
use in their professional practice."
4. If your sales or rentals are of equipment
and supplies that do not meet the criteria for exemption as defined above, such
sales or rentals are taxable.
5. For additional information on eligible items
under Titles 18 and 19 of the Social Security Act, you may contact the Utah
Department of Health, Division of Health Care Financing.
This
opinion is based upon the facts presented in your letter. Obviously, if there are deviations from these facts, this opinion may be
negated.
If
you do not agree with this determination, you may appeal to the Tax Commission
for a formal hearing. The results of
that hearing would constitute a declaratory judgement and be appealable to the
Utah State Supreme Court. A Notice of
Appeal Rights and a copy of the Utah Taxpayer Bill of Rights are attached.
For
The Commission,
Alice
Shearer
Commissioner