Current through Register Vol. 49, No. 9, September, 2024
A. The gross receipts or gross proceeds
derived from the rental, sale, or repair of the following items are exempt from
tax if prescribed by a physician: durable medical equipment; mobility-enhancing
equipment; disposable medical supplies; or a prosthetic device.
B. This exemption shall only apply to durable
medical equipment, mobility-enhancing equipment, disposable medical supplies,
or a prosthetic device sold to a specific patient pursuant to a prescription
written by a physician prior to sale.
C. Physicians, hospitals, nursing homes, and
long-term care facilities are considered consumers of all property and services
which they purchase for use in the practice of their professions. Physicians,
hospitals, nursing homes, and long-term care facilities are liable for the
sales and use tax on their purchases unless the requirements of this exemption,
or other applicable exemption, are satisfied.
D. For the purpose of this rule, "physician"
means a person licensed under Ark. Code Ann. §
17-95-401 et
seq. and includes osteopathic physicians (D.O.). The term physician does not
include chiropractors, podiatrists, dentists, optometrists, or physical
therapists.
E. DURABLE MEDICAL
EQUIPMENT.
1. "Durable medical equipment"
means equipment, including repair and replacement parts for the equipment,
which meet the following conditions:
a. Can
withstand repeated use;
b. Is
primarily and customarily used to serve a medical purpose;
c. Generally is not useful to a person in the
absence of illness or injury;
d. Is
not worn in or on the body; and
e.
Is for home use.
2.
Durable medical equipment does not include mobility-enhancing
equipment.
3. For the purposes of
durable medical equipment, repair and replacement parts include all components
or attachments used in conjunction with durable medical equipment.
4. Examples of durable medical equipment
include, but are not limited to, the following items: respiratory humidifier;
glucose meters; apnea monitors; billie lights; vaporizers; injection guns;
enteral feeding bags; wheelchair cushions; and traction equipment.
F. MOBILITY ENHANCING EQUIPMENT.
1. "Mobility enhancing equipment" means
equipment, including repair and replacement parts for the equipment, which meet
the following conditions:
a. Is primarily and
customarily used to provide or increase the ability to move from one place to
another and which is appropriate for use either in a home or a motor
vehicle;
b. Is not generally used
by a person with normal mobility; and
c. Does not include any motor vehicle or
equipment on a motor vehicle normally provided by a motor vehicle
manufacturer.
2.
Mobility-enhancing equipment does not include durable medical
equipment.
3. Examples of mobility
enhancing equipment include, but are not limited to, the following items:
crutches; canes; lift chairs; transfer belts; walkers; wheelchair ramps; and
swivel seats.
G.
DISPOSABLE MEDICAL SUPPLIES. Examples of disposable medical supplies include,
but are not limited to, the following items: ostomy, urostomy, and colostomy
supplies; enemas, suppositories, and laxatives used in routine bowel care; and
disposable undergarments and linen savers.
H. PROSTHETIC DEVICE.
1. "Prosthetic device" means a replacement,
corrective, or supportive device, including repair and replacement parts for
the device, worn in or on the body to:
a.
Artificially replace a missing portion of the body;
b. Prevent or correct physical deformity or
malfunction; or
c. Support a weak
or deformed portion of the body.
2. Prosthetic device does not include
corrective eyeglasses, contact lenses, or dental prostheses.
3. Examples of prosthetic devices include,
but are not limited to, the following items: abdominal belts; catheters;
hearing aids; artificial limbs; insulin pumps; mastectomy surgical bras; and
orthopedic shoes.
4. Many
prosthetic devices cannot be purchased directly by a patient. A prosthetic
device that would be exempt if it could be purchased directly by the patient is
exempt if the physician procures the device from the medical supplier on behalf
of a specific patient. A prosthetic device that is purchased for use or
consumption in the performance of nontaxable medical services or otherwise not
purchased on behalf of a specific patient does not meet the requirements of
Ark. Code Ann. §
26-52-433.
5. The general exemption certificate (Form ST
391) or the multistate certificate of exemption (SSTGB Form F0003) may be used
to claim this exemption on behalf of the patient. Both forms may be obtained on
the Department's website. Documentation must be maintained to support that the
prosthetic device was purchased on behalf of the specific patient pursuant to a
prescription.
Ark. Code Ann. §
26-52-433
