050.01 The following definitions apply to
this regulation and
Reg-1-051,
Physicians and Dentists. The Nebraska Department of Revenue will rely upon
determinations of the Nebraska Medical Assistance Program operated by the
Nebraska Department of Health and Human Services (Medicaid) to determine if
specific equipment, supplies, or devices are eligible for coverage under
Medicaid.
050.01A Appropriate for use in the
home means the equipment can be used or operated by a person without
specialized training.
050.01B Drug
means any compounds, substances, or preparations, other than grooming and
hygiene products such as soap, toiletries, and cosmetics, food and food
ingredients, dietary supplements, or alcoholic beverages which are:
050.01B(1) Recognized in the official U.S.
Pharmacopoeia, official U.S. Homeopathic Pharmacopoeia, or official National
Formulary;
050.01B(2) Intended for
use in the diagnosis, cure, mitigation, treatment, or prevention of disease;
or
050.01B(3) Intended to affect
the structure or function of the body.
050.01C Durable medical equipment means
equipment, including repair and replacement parts, that:
050.01C(1) Can withstand repeated
use;
050.01C(2) Is primarily and
customarily used to serve a medical purpose;
050.01C(3) Is not generally useful to a
person in the absence of illness or injury; and
050.01C(4) Is appropriate for use in the
home.
050.01C(5) Durable medical
equipment does not include exercise equipment, recliners, vibrators, hot tubs,
or monitoring devices unless the monitoring devices are necessary to use other
durable medical equipment.
050.01D Home medical supplies means supplies
primarily and customarily used to serve a medical purpose that are appropriate
for use in the home and are not generally useful to a person in the absence of
illness or injury. Home medical supplies do not include items for personal
comfort, hygiene, or cosmetic purposes, or any drugs.
050.01E Mobility enhancing equipment means
equipment, including repair and replacement parts, which:
050.01E(1) Is primarily and customarily used
to provide or increase the ability to move from one place to another;
050.01E(2) Is not generally used by persons
with normal mobility; and
050.01E(3) Is appropriate for use either in a
home or a motor vehicle.
050.01E(4)
Mobility enhancing equipment does not include any motor vehicle or equipment on
a motor vehicle normally provided by a motor vehicle manufacturer, for example,
power steering, power brakes, automatic door locks, or running
boards.
050.01F Oxygen
equipment means oxygen cylinders, cylinder transport devices, including sheaths
and carts, cylinder studs and support devices, regulators, flowmeters, tank
wrenches, oxygen concentrators, liquid oxygen base dispensers, liquid oxygen
portable dispensers, oxygen tubing, nasal cannulas, face masks, oxygen
humidifiers, and oxygen fittings and accessories.
050.01G Over-the-counter drug means a drug
containing a label as required by
21
C.F.R. 201.66. The over-the-counter drug
label includes a drug facts panel or a statement of the active ingredients with
a list of those ingredients contained in the compound, substance, or
preparation.
050.01H Prescription
means an order, formula, or recipe issued in any form of oral, written,
electronic, or other means of transmission by a practitioner licensed under the
Uniform Credentialing Act.
005.01I
Prosthetic device means replacement, corrective, or supportive devices worn on
or in the body to replace a missing portion of the body, prevent or correct
physical deformity or malfunction, or support a weak or deformed portion of the
body. Prosthetic devices include any supplies used with prosthetic devices and
any repair or replacement
050.02 Sales of mobility enhancing equipment
for human use are exempt from sales and use tax when supported by a
prescription issued by a practitioner licensed under the Uniform Credentialing
Act. Taxation of mobility enhancing equipment that is annexed to real estate
will be governed by the selected option of the contractor annexing the mobility
enhancing equipment. (
Reg-1-017,
Contractors).
050.02A Option 1 contractors
may accept a Nebraska Resale or Exempt Sale Certificate, Form 13, and a copy of
the prescription to exempt the equipment or materials from sales tax.
050.02B Option 2 and Option 3 contractors are
the consumers of all mobility enhancing equipment that is purchased and annexed
to real estate. Option 2 and Option 3 contractors must pay tax on this
equipment and materials, and do not collect sales tax from their customers.
Option 2 and Option 3 contractors cannot accept a Form 13 or a prescription
from their customer to exempt the equipment or materials from tax.
050.03 Sales of home medical
supplies, oxygen, oxygen equipment, prosthetic devices, and durable medical
equipment are exempt from sales and use tax if the home medical supplies,
oxygen, oxygen equipment, prosthetic devices, or durable medical equipment are:
050.03A Sold for a human patient's
use;
050.03B Sold pursuant to a
prescription issued by a practitioner licensed under the Uniform Credentialing
Act for the treatment of a medical condition; and
050.03C Either;
050.03C(1) Paid for or eligible for coverage
under Medicaid, or
050.03C(2)
Transferred to the patient during a procedure which is paid for or eligible for
coverage under Medicaid, regardless of whether or not the patient is eligible
for assistance.
050.04 Sales of drugs for human use, except
over-the-counter drugs, are exempt from sales and use tax when supported by a
prescription issued by a practitioner licensed under the Uniform Credentialing
Act.
050.04A Over-the-counter drugs that can
be purchased without a prescription are taxable even if they are prescribed by
a practitioner licensed under the Uniform Credentialing Act.
050.04B All illegal drugs are
taxable.
050.05 Sales of
insulin for human use with or without a prescription are exempt from sales
tax.
050.06 Purchases by physicians
and dentists are discussed in
Reg-1-051,
Physicians and Dentists.
050.07
Purchases by hospitals, clinics, or health care practitioner facilities that
are not sales tax-exempt are taxed in the same manner as purchases by
physicians and dentists . Hospitals, clinics, or health care practitioner
facilities must maintain records showing that prescriptions were issued for
items transferred without any tax paid or collected.
050.08 Retailers making sales of drugs, other
than over-the-counter drugs, durable medical equipment, home medical supplies,
prosthetic devices, or mobility enhancing equipment, must keep the prescription
sales records segregated from other sales records.
050.09 Charges which are billed under the
Nebraska Medical Assistance Program operated by the Nebraska Department of
Health and Human Services and are paid by the State of Nebraska, are deemed to
be purchases by the state and are exempt from sales tax.
