Tax Type
Retail Sales and Use Tax
Description
Knee brace; Medical equipment and devices
Topic
Exemptions
Taxability of Persons and Transactions
Date Issued
01-04-1989
January 4, 1989
Re: Request For Ruling: Retail Sales and Use Tax
Dear*****************
This will reply to your letter dated October 3, 1988, in which you requested whether certain products sold by ************* ( "The Taxpayer" ), qualify for exemption from the sales and use tax under Virginia Code §58.1-608(22).
FACTS
The Taxpayer sells and rents two types of continuous passive motion devices ("the devices"). The first is used for rehabilitation of the lower extremities (i.e. legs, feet, knees, etc.) and the other is used for rehabilitation of the hands. These devices are altered and programmed to the individual patient and accomplish their rehabilitative goal by electronic muscle stimulation and joint manipulation. The devices require little or no physical effort by the user and the rental or purchase of these devices must be pursuant to a doctor's prescription or Letter of Medical Necessity (signed by a physician).
The Taxpayer also sells Patient Kits ("the kits") which are ancillary to the sale and rental of the devices. The kits are attached to the devices by velcro straps and, as they are in direct contact with the patient, are discarded when sanitary standards dictate. The kits are considered an intrinsic part of the rehabilitative process in that they are designed specifically for use with the devices (i.e. the devices cannot be used without the kits.)
Finally, the Taxpayer asks whether its post operative brace qualifies for exemption from the tax. The brace, designed for knee rehabilitation, is adjustable in 7.5 degree increments over a 120 degree range and facilitate early recuperation by allowing a controlled amount of flexion and extension while protecting against over flexion or over extension.
RULING
Virginia Code §58.1-608(22), provides an exemption from the sales and use tax for:
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- Wheelchairs...braces...prosthetic devices, orthopedic appliances, catheters...and other durable medical equipment and devices, and related parts and supplies specifically designed for those products...when such items or parts are purchased by or on behalf of an individual for use by such individual. (Emphasis added).
- Wheelchairs...braces...prosthetic devices, orthopedic appliances, catheters...and other durable medical equipment and devices, and related parts and supplies specifically designed for those products...when such items or parts are purchased by or on behalf of an individual for use by such individual. (Emphasis added).
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- [E]quipment which (1) can withstand repeated use, (2) is primarily and customarily used to serve a medical purpose, (3) generally is not useful to a person in the absence of illness or injury, and (4) is appropriate for use in the home.
- [E]quipment which (1) can withstand repeated use, (2) is primarily and customarily used to serve a medical purpose, (3) generally is not useful to a person in the absence of illness or injury, and (4) is appropriate for use in the home.
Virginia Code §58.1-608(22), exempts "durable medical equipment and devices, and related parts and supplies specifically designed for those products...." (Emphasis added). Based on the facts presented by the Taxpayer, I find that the kits are related parts and supplies specifically designed for use with the devices and are exempt from the tax when purchased by or on behalf of a specific individual or by a nonprofit hospital.
The above cited code section also exempts "braces" from the tax. Based on the facts presented, the post operative brace manufactured and sold by the Taxpayer qualifies for exemption from the tax when purchased by or on behalf of a specific individual or a nonprofit hospital.
If you have any further questions, please contact us.
Sincerely,
W. H. Forst
Tax Commissioner
Rulings of the Tax Commissioner