Which catheter uses could qualify, and were the listed dilation and contrast-injection catheters taxable?

Plain-English summary

California described three catheter exceptions: permanent implants; postoperative drainage through artificial openings; and postoperative drainage through natural openings under the prosthetic-device provision. Catheters used for diagnosis, irrigation, feeding, and administration were taxable.

The named ureteral and prostatic dilation products and Fogarty arterial embolism catheter were taxable devices, assuming they were not permanently implanted. The cone-tip ureteral catheter used to inject contrast fluid for a retrograde pyelogram was also taxable. Missing facts prevented definitive answers for the remaining products.

Common questions

Were all catheters taxable?

No. The opinion listed permanent-implant and qualifying postoperative drainage exceptions.

Did dilation qualify as drainage?

No. The listed dilation catheters were taxable devices.

Could the agency classify every catheter submitted?

No. It needed facts about use, postoperative status, installation, and duration.

Citations and references

• California Sales and Use Tax Regulation 1591(b)(2) — permanent catheter implants
• California Sales and Use Tax Regulation 1591(b)(5) — qualifying postoperative drainage through natural openings
• California Sales and Use Tax Regulation 1591(j) — qualifying postoperative drainage through artificial openings
• California Sales and Use Tax Regulation 1591(c)(2) — device exclusion applied to dilation and contrast-injection catheters

Source

• Annotated Legal Opinions collection: https://cdtfa.ca.gov/taxes-and-fees/annotations-menu.htm
• Annotation page: https://cdtfa.ca.gov/lawguides/vol2/suta/425-0000-all.html
• Original supporting opinion: https://cdtfa.ca.gov/lawguides/annotations/425-0232.pdf

Original ruling text

425.0232

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION

MEMBER

450 N STREET, SACRAMENTO, CALIFORNIA
(P.O. BOX 942879, SACRAMENTO, CALIFORNIA 94279-0001)
(916) 324-3828

First District
BRAD SHERMAN
Second District, Los Angeles
ERNEST J. DRONENBURG, JR.
Third District, San Diego
MATTHEW K. FONG
Fourth District, Los Angeles

April 15, 1994

GRAY DAVIS
Controller, Sacramento

BURTON W. OLIVER
Executive Director

Mr. D--- T--Mrs. S--- A. L--- G--A--- A--- & Co.
Suite XXXX, --- --- Tower
--- --- Plaza
--- ---, California XXXXX-XXXX
Re:

[No Permit Number]
Catheters

Dear Mr. T--- and Mrs. G---:
I am answering your recent letter to me of which the Legal Division received on March 4, 1994. You inquire generally about the application of tax to the sales of certain catheters. You list several catheters and describe the purpose of each. OPINION In my previous correspondence with you I have discussed the principles generally governing the exemptions from tax for sales of prescription medicines as provided in various statutes and interpreted and implemented by Regulation 1591. For the sake of brevity, I will not repeat them here. However, for a review of the principles governing the exemptions for sales of catheters, all catheters are taxable with three exceptions: (1) catheters which are permanently implanted are exempt under Regulation 1591(b)(2); (2) catheters which are used for drainage purposes through artificial openings are exempt under Regulation 1591(j); and (3) catheters or other types of drainage devices used for drainage through natural openings are exempt under sub-division (b)(5). To be exempt, their use must be post-surgery. Sales of catheters used for diagnostic purposes, irrigation, feeding, and administration are subject to tax.

Mr. D--- T--Mrs. S--- L--- G---

-2-

April 15, 1994
425.0232

While you state the purpose of the catheters on your list, you do not indicate how they are used, whether post-surgically or not and how and for how long they are installed. For this reason I cannot give you a definitive opinion on all of the catheters. However, the Finalyson Ureteral Access Set, Balloon Ureteral Dilator Set, Omega Balloon Ureteral Dilation Set, Prostatic Dilation Catheter, and the Fogarty Arterial Embolism Catheter are used for dilation rather than drainage. Assuming they are not permanently implanted, such items are appliances or devices excluded from the term "medicine" under Regulation 1591(c)(2). You indicate that the Cone Tip Ureteral Catheter is used for retrograde pyelograms, a procedure in which the catheter is used to inject a roentgenographic contrast fluid into the renal pelvis through the ureter. This is a surgical procedure; the catheter is also an appliance or device excluded from the term "medicine" under Regulation 1591(c)(2). If you need anything further, please do not hesitate to write again. Sincerely,

John L. Waid
Tax Counsel
JLW:es