Ezel / Tax Rulings / CA

Which medical oxygen delivery equipment qualified when sold or rented for physician-directed personal use?

Short answer Listed liquid-oxygen systems, concentrators, cylinders, regulators, humidifiers, stands, carts, masks, tubing, and necessary accessories qualified under the stated conditions.
State
CA
Ruling
Annotation 425.0511.010
Tax type
Sales and Use Tax
Issued
1983-06-03
Issued by
California State Board of Equalization
Requested by
A medical-product association asking about prescribed oxygen equipment and supplies
Topics
medical oxygen oxygen concentrator physician direction equipment rental
Source
View Original PDF

Apply this to your situation

This page answers the general question as of 1983. Ask about yours and see what current California tax law says, with citations.

Currency note: this ruling is from 1983
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This June 3, 1983 opinion quoted a version of section 6369.5 that was scheduled to remain effective only through December 31, 1984 unless extended or changed by later legislation. The conclusion also required sale, lease, or rental to an individual for that person's physician-directed personal use. Current law must be checked.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page as a PDF) is the authoritative source for any reliance.
View original ruling (PDF)

Plain-English summary

California concluded that the listed liquid-oxygen systems, oxygen concentrators, high-pressure cylinders, regulators, humidifiers, cylinder stands, and ambulatory cylinder carts qualified when sold or rented to an individual for that individual's personal use as directed by a physician.

The agency interpreted “medical oxygen delivery system” to include concentrators, tubes, masks, and related items necessary to deliver oxygen to the person. The source quoted a statutory sunset date, making the ruling expressly historical.

Common questions

Did rentals qualify as well as sales?

Yes. The quoted statute covered sales, leases, and rentals under the stated conditions.

Were masks and tubing included?

Yes, when necessary for oxygen delivery.

Did any medical-facility purchase qualify?

The opinion addressed an individual's physician-directed personal use, not general facility use.

Citations and references

  • California Revenue and Taxation Code section 6369.5 — medical oxygen delivery system exemption quoted and applied in the opinion
  • California Sales and Use Tax Regulation 1591 — proposed amendment concerning medical oxygen systems enclosed with the letter

Source

Original ruling text

425.0511.010

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION
1020 N STREET, SACRAMENTO, CALIFORNIA
(P.O. BOX 942879, SACRAMENTO, CALIFORNIA 94279-0001)
916/ 445-6493

June 3, 1983

Mr. R--- A--Executive Director
C--- A--- of
M--- P--- S--XXXX Xth Street, Suite XXX
---, CA XXXXX
Dear Mr. A---:
Your letters of February 11, 1983 to Monty Williams and February 24, 1983 to Sherleen Redd of the Board’s Audit Evaluation and Planning Unit have been referred to me for reply. You request our opinion as to the correct application of tax to the sale and use of certain medical equipment and supplies. The following items are only sold or rented by your firm as prescribed by a physician: 1.

Liberator/stroller liquid oxygen system rental, liberator vessel and portable stroller.

2.

Oxygen Concentrator Unit.
(a) any necessary accessories to an oxygen concentrator unit such as a oxygen mask or tubing.

3.

High pressure oxygen cylinders, “K” or “H” and “E” sizes.

4.

Oxygen regulators to control flow.

5.

Oxygen humidifiers to moisten oxygen vapor.

6.

Oxygen cylinder stands, for safety.

7.

Oxygen cylinder carts, for ambulating, with cylinders.

Mr. R--- A---

-2-

June 3, 1983
425.0511.010

Revenue and Taxation Code Section 6369.5 provides:
“(a) There are exempted from the taxes imposed by this part the gross receipts from the sale and the storage, use, or other consumption, in this state of any medical oxygen delivery system, including, but not limited to, liquid oxygen containers, high pressure cylinders, and regulators, when sold, leased or rented to an individual for the personal use of that individual as directed by a physician. “(b) This section shall remain in effect until December 31, 1984, and on that date is repealed, unless a later enacted statute which is chaptered before that date, deletes or extends that date.” It is our position that the term “medical oxygen delivery system,” as used in Section 6369.5, includes oxygen concentrators, tubes, masks and related items which are necessary for the delivery of oxygen to the person. Therefore, we are of the opinion that the items listed above are not subject to tax when sold or rented to an individual for the personal use of that individual as directed by a physician. Enclosed for your reference is a notice of public hearing to be held July 27, 1983 and the proposed amendment to Regulation 1591 concerning medical oxygen delivery systems. If you have any further questions, please write this office. Very truly yours,

Charles J. Graziano
Tax Counsel

CJG:ba

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