Could an electric three-wheel scooter qualify for California's wheelchair exemption?

Plain-English summary

California concluded that an electric three-wheel scooter could qualify as a tax-exempt wheelchair. The described scooter performed like a conventional four-wheel electric wheelchair but was smaller, more compact, and had three wheels.

Tax did not apply when the scooter was sold or rented to an individual for that individual's personal use as directed by a physician. The letter suggested obtaining a written statement from the customer or physician and retaining it for audit purposes; it framed that step as a recordkeeping suggestion, not as the statutory definition of the exemption.

Common questions

Did having only three wheels prevent wheelchair treatment?

No. The opinion relied on the scooter's similarity in design and function to an electric wheelchair.

What conditions did the opinion state?

The sale or rental had to be to an individual for that individual's personal use as directed by a physician.

Did Medicare coverage decide the California tax result?

No. The requester noted Medicare treatment, but the opinion applied California Revenue and Taxation Code section 6369.2 and the cited sales-tax regulation.

What documentation did the letter recommend?

A written statement from the customer or physician confirming personal use as directed by a physician, retained for a future audit.

Citations and references

• California Revenue and Taxation Code section 6369.2 — exemption for specified mobility devices under the conditions described in the opinion
• Historical California Sales and Use Tax Regulation 1591(k), now Regulation 1591.2 — wheelchair rule identified by the source

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/425-0355.pdf

Original ruling text

425.0355

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION
1020 N STREET, SACRAMENTO, CALIFORNIA
(P.O. BOX 942879, SACRAMENTO, CALIFORNIA 94279-0001)
(916) 322-3684

October 25, 1985

Mr. T--- M---, Manager
J—D--- Co.
M--- & H--- H--- N--XXXX --- Road, Suite X
--- ---, CA XXXXX-XXXX
SR -- XX-XXXXXX
Dear Mr. M---:
This is in reply to your letter of July 15, 1985. You ask whether an electric three wheeled scooter qualifies as a tax exempt wheelchair. You note in your letter that you are a durable medical equipment company supplying medical and homecare health needs to the public. From your letter and the attached brochures we understand that you sell an electric three wheeled scooter that could be utilized as an electric wheelchair. The scooter appears to be similar in both design and function to a conventional four wheel electric wheelchair except that the scooter is smaller, more compact, and has only three wheels. You indicate that Medicare recognizes this device as a covered item if medically necessary. California Sales and Use Tax Law imposes a tax on the sale or use of tangible personal property in this state, unless the sale or use is otherwise exempt from taxation. Section 6369.2 of the Revenue and Taxation Code exempts from taxation the sale, use or other consumption of wheelchairs, crutches, canes, quad canes, walkers, and replacement parts for such devices, when sold to an individual for the personal use of that individual as directed by a physician. Sales and Use Tax Regulation 1591(k) [now Regulation 1591.2] which interprets and applies section 6369.2 provides that wheelchairs are exempt from tax when they are sold or leased to an individual for the personal use of the individual as directed by a physician.

Mr. T--- M---

-2-

October 25, 1985
425.0355

We have previously decided that electric three wheel devices such as the scooter described in your letter and brochures qualify for exemption under section 6369.2 and regulation 1591(k)
[now regulation 1591.2]. Therefore, tax does not apply to the sale or rental of electric three wheel scooters to an individual for the personal use of that individual as directed by a physician. In order to ensure that the sale or rental of electric three wheel scooters meets the above criteria for exempt status, we suggest that you obtain a written statement from either the customer or the physician that the scooter is for the personal use of the customer as directed by a physician. We further suggest that this written statement be retained for your records for future audit purposes. We have enclosed a copy of regulation 1591 (Prescription Medicines) for your reference. If you have any further questions, please do not hesitate to contact us. Very truly yours,

Robert J. Stipe
Tax Counsel

RJS:sr
Enc.