Did a 1996 California letter extend the balloon-catheter exemption to coronary-catheter accessories and supplies?

Plain-English summary

The letter says the Board adopted published amendments to Regulation 1591 on January 10, 1996 concerning intra-aortic balloon catheters and percutaneous coronary angioplasty catheters, identified as PTCA. The quoted subdivision (n) exempted sales of intra-aortic balloon pump catheters and coronary angioplasty balloon catheters but expressly taxed related supplies.

The opinion therefore taxed coronary guide wires, coronary guiding catheters, inflation devices, syringes, hemostatic valves, guide-wire introducers, sheath-introducer systems, torquing devices, and similar supplies or accessories.

The letter says the Board did not intend to enlarge its prior exemption and refers to legislative and industry efforts plus a potential loss of millions of dollars in state and local revenue. It supplies no bill, hearing record, industry submission or revenue calculation supporting those contextual assertions; the operative quoted rule and product list are the grounded basis preserved here.

Live annotation and source posture

The current live annotation preserves the taxable product list and date but omits the two specifically exempt balloon-catheter categories, the January 10 adoption date, the quoted related-supplies sentence, and the letter's limiting rationale.

The live page says homeostatic valves; the official supporting letter says hemostatic valves. This page follows the source product term and discloses the live discrepancy rather than treating the two spellings as independently verified products.

The source is addressed to a redacted company's Director of Financial Analysis but does not reproduce or describe an inquiry. It supplies no company identity, customer, patient, physician, prescription, product specification, part number, packaging, catalog, invoice, sale, price, tax return, audit, assessment, refund or applied outcome. It also does not separately reproduce the full January 10 amendment materials beyond its quotation of subdivision (n).

CDTFA's Annotated Legal Opinions collection says these letters are summarized as annotations and statutory law controls over an inconsistent annotation. The one-page PDF has native text and one letterhead image, so no OCR was required. Two fresh direct PDF downloads and two live-page downloads were byte-identical; duplicate default text extractions also matched.

What this means for you

Classify the exact product, not merely its clinical use alongside an exempt catheter. Under this historical letter, only the two named balloon-catheter categories received the quoted treatment; separate wires, catheters, devices, valves, introducers, syringes and similar accessories remained taxable.

Common questions

Q: Which catheters did the quoted amendment exempt?

A: Intra-aortic balloon pump catheters and coronary angioplasty balloon catheters.

Q: Did use with an exempt balloon catheter make an accessory exempt?

A: No. The quoted rule expressly taxed related supplies.

Q: What accessories did the letter specifically tax?

A: Coronary guide wires, coronary guiding catheters, inflation devices, syringes, hemostatic valves, guide-wire introducers, sheath-introducer systems, torquing devices, and other related supplies and accessories.

Q: Does the source classify a particular product model?

A: No. It supplies no specifications, part numbers, catalogs or sample transactions.

Missing evidence and references

• Taxpayer inquiry or requested product ruling — absent
• Company, customer, patient and physician identities — redacted or absent
• Product specifications, part numbers, catalogs and packaging — absent
• Prescriptions, sales, invoices and prices — absent
• Full January 10, 1996 amendment record — not separately supplied
• Returns, audits, assessments, refunds and applied outcomes — not supplied

Verbatim support

From the official January 18, 1996 Assistant Chief Counsel letter:

“(n) BALLOON CATHETERS. Sales of intra-aortic balloon pump catheters and coronary angioplasty balloon catheters are not subject to tax Sales of related supplies are subject to tax.”

It is apparent that the Board did not want to enlarge the exemption beyond that previously recognized by the Board’s legal staff.

Accordingly, sales tax applies to sales of coronary guide wires, coronary guiding catheters, inflation devices, syringes, hemostatic valves, guide wire introducers, sheath introducer systems, torquing devices, and other related supplies and accessories.

Citations and references

• Historical 18 Cal. Code Regs. § 1591(n) — named balloon catheters and taxable related supplies
• January 10, 1996 published Regulation 1591 amendments — identified but not separately supplied

Source

• Annotated Legal Opinions collection: CDTFA Annotated Legal Opinions
• Live annotation: Annotation 425.0008
• Original supporting opinion: 425.0008 PDF

Original ruling text

425.0008

STATE OF CALIFORNIA

JOHAN KLEHS
First District, Hayward

STATE BOARD OF EQUALIZATION
LEGAL DIVISION - MIC: 82
450 N STREET, SACRAMENTO, CALIFORNIA
(P. O. BOX 942879, SACRAMENTO, CA 94279-0082)
TELEPHONE: (916) 445-3723
FAX: (916) 323-3387

DEAN F. ANDAL
Second District, Stockton
ERNEST J. DRONENBURG, JR.
Third District, San Diego
BRAD SHERMAN
Fourth District, Los Angeles

January 18, 1996

KATHLEEN CONNELL
Controller, Sacramento

BURTON W. OLIVER
Executive Director

Mr. A--- R--- - W--Director, Financial Analysis
C--P. O. Box XXXX
---, CA XXXXX-XXXX
Dear Mr. R--- - W---:
On January 10, 1996, the California State Board of Equaliztion adopted published amendments to its Sales and Use Tax Regulation 1591, concerning sales of intra-aortic balloon catheters and percutaneous coronary angioplasty catheters (PTCA). Those amendments provide as follows: “(n) BALLOON CATHETERS. Sales of intra-aortic balloon pump catheters and coronary angioplasty balloon catheters are not subject to tax Sales of related supplies are subject to tax.” It is apparent that the Board did not want to enlarge the exemption beyond that previously recognized by the Board’s legal staff. Neither the California Legislature nor the elected State Board of Equalization has supported industry attempts to broaden the exemption to cover accessories and related supplies, at a loss of millions of dollars in state and local revenue. Accordingly, sales tax applies to sales of coronary guide wires, coronary guiding catheters, inflation devices, syringes, hemostatic valves, guide wire introducers, sheath introducer systems, torquing devices, and other related supplies and accessories. Very truly yours,

Gary J. Jugum
Assistant Chief Counsel
GJJ:sr
cc:

Mr. Glenn A. Bystrom - MIC:43
Mr. E. L. Sorensen, Jr. - MIC:83