When did California treat a temporary myocardial pacing lead as exempt medicine?

Plain-English summary

California said the Model 6500 temporary myocardial pacing lead could qualify as an exempt prosthetic medicine when implanted during heart surgery, left in place for possible post-surgical complications, and attached to a temporary pacemaker fully worn on or in the patient's body.

The same lead did not qualify if used only during surgery or connected to a bedside pacemaker or other pacing machine not fully worn by the patient. Because the requester had not identified the pacing machine, the letter did not give an unconditional product-wide exemption.

Common questions

Was implantation during surgery enough?

No. The lead also had to remain for post-surgical use and connect to a qualifying fully worn pacemaker.

Did a bedside pacing machine qualify?

No. The source expressly excluded a lead connected to equipment not fully worn by the patient.

Citations and references

• California Revenue and Taxation Code section 6369(c)(4) — prosthetic-device provision applied to the pacing lead and pacemaker combination

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/425-0881.pdf

Original ruling text

425.0881

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION
1020 N STREET, SACRAMENTO, CALIFORNIA
(P.O. BOX 942879, SACRAMENTO, CALIFORNIA 94279-0001)
(916) 324-5589

September 11, 1990
REDACTED TEXT

Dear Mr. REDACTED TEXT:
This is in response to your letter of July 30, 1990 in which you request our opinion regarding the correct application of tax to the Model 6500 temporary myocardial pacing leads. As we understand it, the Model 6500 is a temporary lead (referred to in house as a disposable heart wire) which is implanted during heart surgery and stays implanted following surgery in the event of complications during recovery. Once satisfied the fear of complications is dissipated the physician will remove the lead. You previously received a letter from Mr. George Alvarado, Jr. stating that the model 6500 temporary lead did not qualify as an exempt prescription medicine, however, it was not clear to Mr. Alvarado that the temporary leads were used post-surgically. Revenue and Taxation Code section 6369(c)(4) provides that prosthetic devices designed to be worn on or in the person of the user to replace or assist the functioning of a natural part of the human body are included within the definition of “medicines.” We have previously determined that a temporary lead which is attached to a temporary pacemaker which is fully worn on or in the body of the user qualifies as a prosthetic device under section 6369(c)(4). The temporary lead would not qualify if it were attached to a bedside pacemaker or pacing machine. From the information you submitted in your letter, we are unable to determine what kind of pacing machine is used. A second requirement is that the lead be utilized in a post-surgical setting. We are of the opinion that if the Model 6500 temporary myocardial lead is attached to a pacemaker which is fully worn on the body of the patient and is implanted during heart surgery and stays implanted following surgery, it would qualify as an exempt prescription medicine under Revenue and Taxation Code section 6369(c)(4). As such, your sale of the Model 6500 for use in this manner would be exempt from tax. The Model 6500 would not qualify as an exempt prescription medicine if it is used only during a surgical procedure or it is used with a pacemaker or pacing machine which is not fully worn on the patient.

Mr. REDACTED TEXT

-2-

September 11, 1990
425.0881

If you have further questions concerning this matter, please write this office again. Very truly yours,

MCA:wak

Mary C. Armstrong
Senior Tax Counsel