95-042
Response
July 17, 1995
Request
Utah
State Tax Commission
210
North 1950 West
Salt
Lake City, UT 84134
Attn:
Commissioners,
In
regards to the Tax Bulletin 9-95, effective July 1, 1995.
We
are a small business that sells Home Medical Equipment for use by customers in
their homes.
We
sell motorized wheelchairs, wheelchairs, bath benches, bathroom grab bars,
blood pressure monitors, crutches, walkers, canes, etc.
We
also do the service and labor on these items when needed in our shop or in the
homes of our customers who cannot get out.
We
need to know if we can be tax exempt on the service and labor.
Please
let us know as soon as possible so we will know what we need to do in this
matter.
Sincerely,
XXXXX
XXXXX
RE:
Advisory Opinion - Application of sales tax exemption to home medical equipment
Dear
XXXXX,
You
requested an advisory opinion as to the application of sales tax to the kinds
of home medical equipment that your company sells and services. Our research indicates the following:
Equipment
of the type listed in your letter qualifies for the sales tax exemption when it
is purchased under the written prescription or authorization of a licenced
medical doctor. The equipment must also
meet all of the following criteria:
1. It must be used exclusively for a medical purpose.
2. It must be a type of equipment which is not generally useful
to a person in the absence of illness or injury.
3. It must be appropriate for home use.
4. It must be listed as eligible for payment under Titles 18 or
19 of the Social Security Act.
5. The equipment must be purchased or leased by or for a home
patient, and it must be used personally and exclusively by the patient in the
medical treatment of an existing disease or injury.
The
sales tax exemption applies not only to the sale or lease of qualifying
equipment, but also to repairs which are essential to the effective use of
qualifying equipment.
This
opinion is based only on the facts presented.
If additional facts arise which present you with an new question, please
feel free to ask for another advisory opinion.
For
the Commission,
Alice
Shearer
Commissioner