Current through Register Vol. 30, No. 38, September 20, 2024
A. In this Section:
1. "Drug" means an article that, according to
federal or state law, is:
a. Recognized in the
official United States Pharmacopeia, official Homeopathic Pharmacopeia of the
United States, official National Formulary, or any supplement to these
documents; or
b. Intended for use
in the diagnosis, cure, mitigation, treatment, or prevention of disease in
humans or animals; or
c. Not food
and is intended to affect the structure or any function of the body of humans
or animals; or
d. Intended for use
as a component of any article specified in subsections (a), (b), or
(c).
2. "Drug on a
prescription" means a prescription drug.
3. "Food" means an article used for food or
drink for humans or animals, chewing gum, or an article used as a component of
such an article.
4. "Hearing aid"
means any wearable device designed as a remedy or to compensate for defective
human hearing, including parts, attachments, accessories, and
earmolds.
5. "Legend drug" means a
drug that
21
U.S.C. 353(b)(4)(A) requires
to bear the symbol "Rx only" before dispensing.
6. "Nonprescription product" means a drug or
other article that can be purchased by the final consumer of the drug or
article without a prescription, regardless of whether purchased on the advice
or recommendation of a member of the medical, dental, or veterinarian
profession. Examples include over-the-counter drugs and those dietary
supplements, vitamins, minerals, herbs, and other similar supplements that do
not qualify as prescription drugs.
7. "Over-the-counter drug" means a drug that
is subject to federal labeling requirements in
21
CFR 201.66.
8. "Prescriber" means a member of the
medical, dental, or veterinary profession authorized by federal or state law to
prescribe a drug.
9. "Prescription"
means an order for a drug issued in any form.
10. "Prescription drug" means a legend drug
or a drug that, according to federal or state law, can be dispensed only:
a. Upon a written prescription of a
prescriber for the drug;
b. Upon an
oral prescription by the prescriber for the drug that federal or state law
requires be reduced promptly to a form of writing by the prescriber and then
filed by a pharmacist or the prescriber; or
c. By refilling a written or oral
prescription if refilling is authorized by the prescriber for the drug either
in the original prescription or by oral order that is first reduced promptly to
writing and then filed by a pharmacist or the prescriber.
11. "Prescription eyeglasses" includes frames
and other component parts of eyeglasses if purchased for use with the
prescription lenses.
12.
"Prosthetic appliance" means an artificial device that fully or partially
replaces a part or function of the human body or increases the acuity of a
sense organ.
B. The
storage, use, or consumption in this state of the following kinds of tangible
personal property is not subject to tax:
1.
Prescription drugs, including those used in the course of treating
patients;
2. Medical oxygen,
pursuant to A.R.S. §
42-5159(A)(16);
3. Insulin, insulin syringes, and glucose
strips, whether or not prescribed;
4. Prosthetic appliances, prescribed or
recommended by a statutorily-authorized individual;
5. Durable medical equipment, pursuant to
A.R.S. §
42-5159(A)(21);
6. Prescription eyeglasses and contact
lenses; and
7. Hearing aids.
Batteries and cords are subject to tax.
C. The purchase of component and repair parts
for any tangible personal property that is exempt under either subsection (B)
or (F) is not subject to tax.
D. If
a written prescription or recommendation is required to purchase tangible
personal property, a taxpayer shall maintain the prescription or recommendation
as part of the taxpayer's records. The taxpayer's records for documenting
purchases shall provide reasonable detail to allow the Department, upon
inspection, to identify property as exempt.
E. Purchases by a final consumer of
nonprescription products and those medical supplies or appliances not provided
for under subsection (B) are subject to tax.
F. Purchases of nonprescription products or
other medical supplies or appliances by doctors, dentists, or veterinarians are
subject to tax unless the purchase qualifies as a purchase for resale and the
doctor, dentist, or veterinarian is a retailer in the business of reselling the
property.
