Current through August 26, 2024
(1) DEFINITION. For the exemption in s.
77.54(14),
Stats., "drug" means a compound, substance, or preparation, or any component of
them, other than food and food ingredients, dietary supplements, or alcoholic
beverages, to which any of the following applies:
(a) It is listed in the United States
Pharmacopoeia, Homeopathic Pharmacopoeia of the United States, or National
Formulary, or any supplement to any of them.
(b) It is intended for use in diagnosing,
curing, mitigating, treating, or preventing a disease.
(c) It is intended to affect a function or
structure of the body.
(2) ITEMS WHICH ARE DRUGS. Drugs include the
following items described in sub. (1):
(a)
Acne medications.
(b) Alcohol
(rubbing).
(c) Analgesics (aspirin,
acetaminophen, ibuprofen, ketoprofen, naproxen, etc.).
(d) Antacids.
(e) Antibiotic creams and
ointments.
(f) Antifungal creams
and sprays.
(g)
Antihistamines.
(h) Antiseptics
(betadyne, iodine).
(i) Birth
control (pills and patches and implants).
(j) Burn remedies.
(k) Contraceptives (creams, gels, foams, and
medicated condoms).
(l) Cold and
cough medicines, drops, and lozenges.
(m) Contact lens solutions.
(n) Decongestants.
(o) Dermal fillers (injectable).
(p) Dialysis dialysate solution.
(q) Diaper rash creams.
(r) Enema preparations.
(s) Eye drops.
(t) Gases - medical grade (air, carbon
dioxide, helium, nitrogen, oxygen).
(u) Hand sanitizers.
(v) Hydrogen peroxide.
(w) Insulin.
(x) Laxatives.
(y) Lip balm.
(z) Nutrition formulas (enteral and
parenteral with a drug facts label).
(za) Oxygen.
(zb) Prescription medicines.
(zc) Radioactive isotopes.
(zd) Rubs, mentholated.
(ze) Sleeping pills.
(zf) Smoking cessation products such as gums,
lozenges, and patches that contain nicotine.
(zg) Sterile water (for
injections).
(zh) Sterile normal
saline .9% (IV or irrigation).
(zi)
Vaccines.
(zj) Yeast infection
medications.
Note: A listing that contains numerous items and
descriptions of items that have been categorized as drugs, durable medical
equipment, mobility-enhancing equipment, and prosthetic devices can be found in
the Rules and Procedures of the Streamlined Sales Tax Governing Board, Inc.,
available at http://www.streamlinedsalestax.org.
(3) ITEMS WHICH ARE NOT DRUGS.
Items which are not described in sub. (1) and which are not drugs include:
(a) Alcoholic beverages, soft drinks and
distilled water.
(b) Durable
medical equipment.
(c) Prosthetic
devices.
(d) Mobility-enhancing
equipment.
(e) Dietary
supplements.
(4) EXEMPT
SALES OR USE OF DRUGS. Drugs shall be exempt if:
(a) Prescribed for the treatment of a human
being by a person authorized to prescribe the drugs, and dispensed on
prescription filled by a registered pharmacist in accordance with law. Insulin
furnished by a pharmacist to a person for treatment of diabetes as directed by
a physician shall be deemed dispensed on prescription.
(b) Sold to a licensed physician, surgeon,
podiatrist, dentist, or hospital for the treatment of a human being.
(c) Furnished by a licensed physician,
surgeon, podiatrist, or dentist to a patient who is a human being for treatment
of the patient.
(d) Furnished by a
hospital for treatment of any person pursuant to the order of a licensed
physician, surgeon, dentist, or podiatrist. For this exemption, "hospital" has
the meaning described in s.
50.33(2),
Stats., and does not include nursing homes.
(e) Sold to this state or any political
subdivision or municipal corporation of the state, for use in the treatment of
a human being; or furnished for the treatment of a human being by a medical
facility or clinic maintained by this state or any political subdivision or
municipal corporation of the state.
(f) Furnished without charge to a physician,
surgeon, nurse anesthetist, advanced practice nurse, osteopath, dentist
licensed under ch. 447, Stats., podiatrist licensed under ch. 448, Stats., or
optometrist licensed under ch. 449, Stats., if the drug may not be dispensed
without a prescription.
(5) TAXABLE SALES OF DRUGS. Taxable sales of
drugs include:
(a) Retail sales for use in
laboratories.
(b) Retail sales of
drugs for pets.
Note: For exemption of drugs used on farm
livestock or other animals, refer to ss.
Tax 11.12 and 11.61.
Note: Section Tax 11.09 interprets ss.
77.51(3pj) and
77.54(14), (14m), (14r), and (33), Stats.
The interpretations in s. Tax 11.09 are effective under the
general sales and use tax law on and after September 1, 1969, except: (a) The
exemption for certain medicines furnished without charge became effective
October 14, 1997, pursuant to 1997 Wis. Act 27; and (b). The definition of
"drug" is effective October 1, 2009, pursuant to 2009 Wis. Act
2.
