Were medical oxygen and other medical gases exempt when sold to hospitals for human treatment?

Plain-English summary

California exempted medical oxygen and other medical gases sold to hospitals for treating human beings under the section 6369 amendment effective September 20, 1963.

Before that amendment, the letter said such sales were taxable unless the hospital gave a valid resale certificate. The new treatment-sale exemption removed that resale requirement for the qualifying hospital purchases.

Common questions

Which products were covered?

Medical oxygen and other medical gases.

Who was the qualifying buyer?

A hospital purchasing them for human treatment.

What changed in 1963?

The amendment created the hospital treatment-sale exemption described in the letter.

Citations and references

• California Revenue and Taxation Code section 6369 — 1963 hospital-treatment amendment applied in the letter
• Historical California Board of Equalization Ruling 22(a)(4) — hospital medicine-sale provision cited in the letter

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/425-0620.pdf

Original ruling text

STATE OF CALIFORNIA

425.0620

STATE BOARD OF EQUALIZATION

December 3, 1963

X--------------------------Attention:

X----------------------------

Gentlemen:
Sales of medical oxygen and other medical gases to hospitals for the treatment of a human being are exempt from the sales tax. See ruling 22(a)(4), copy enclosed. This is based on the amendment to section 6369 of the Sales and Use Tax Law, effective September 20, 1963. Previously such sales were taxable unless the hospital gave a valid resale certificate for the property purchased. Very truly yours,

E.H. Stetson
Tax Counsel
EHS:fb
Enclosure
Cc:

San Jose – District Administrator