Were transcutaneous electrical nerve stimulators exempt prosthetic devices?

Plain-English summary

California distinguished between transcutaneous electrical nerve stimulators that were fully worn on the user's body and larger units that were not. Fully body-worn stimulators qualified as exempt prosthetic devices under the cited statute; non-body-worn units were taxable.

The memorandum recommended revising a broader annotation after staff learned of products such as the Alpha-Stim 2000, described as being the size of a typewriter.

Common questions

Did every transcutaneous nerve stimulator qualify?

No.

What fact controlled the distinction?

Whether the device was fully worn on the user's body.

How did the memorandum treat a large freestanding unit?

It did not qualify as a prosthetic device under the cited “designed to be worn on or in the person” language.

Citations and references

• California Revenue and Taxation Code section 6369(c)(4) — prosthetic-device provision applied in the memorandum

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/425-0885.pdf

Original ruling text

State of California

Board of Equalization

Memorandum

To:

D. J. Hennessy

From:

Mary C. Armstrong

Subject:

Transcutaneous Electrical Nerve Stimulators
Annotation 425.0885

425.0885

Date:

April 11, 1983

As a result of a decision by the Board it was determined that Transcutaneous Electrical Nerve Stimulators are prosthetic devices within the meaning of Revenue and Taxation Code section 6369(c)(4). In the Current Legal Digest dated March 21, 1983, this decision was noted and Annotation 425.0885 was revised to read: “Transcutaneous nerve stimulators are ‘medicines’ as that term is used in Section 6369 and tax does not apply to their sale.” Under Section 6369(c)(4) prosthetic devices include only those devices “designed to be worn on or in the person of the user…” It has been brought to our attention that there are some types of transcutaneous electrical nerve stimulators which are not fully worn on the body of the user. (See attached newspaper article featuring the Alpha-Stim 2000 which is the size of a typewriter). Such devices cannot, therefore, be considered prosthetic devices as that term is used in section 6369(c)(4). We would therefore recommend that Annotation 425.0885 be revised as follows: “Transcutaneous electrical nerve stimulators, which are fully worn on the body of the user, are prosthetic devices as that term is used in section 6369(c)(4), and tax does not apply to their sale; however transcutaneous electrical nerve stimulators which are not fully worn on the body of the user do not qualify as prosthetic devices, and tax applies to their sale.” MCA:ba cc:

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