Are retail sales of enteral feeding pumps subject to Colorado sales tax?

Plain-English summary

A company that sells enteral feeding pumps — mechanical, electric pumps that deliver enteral (tube) feeding, with settings for food volume, priming, over-infusion safeguards, alarms, and control/display panels — asked whether its retail sales of the pumps are subject to Colorado sales tax. The Department's answer: yes, they're taxable.

Why. Colorado levies sales tax on the retail sale of tangible personal property (§ 39-26-104(1)). While Colorado has a number of medical-equipment exemptions (collected in the Department's FYI Sales 68), enteral pumps are specifically listed in FYI Sales 68 (page 5) as "Taxable." So a straightforward retail sale of an enteral feeding pump is subject to sales tax.

A nuance worth knowing (outside this GIL). Colorado separately exempts therapeutic devices over $100 when a patient buys them on a doctor's written recommendation (§ 39-26-717) — and the Department's PLR 10-004 actually names enteral pumps (and apnea monitors) as examples a patient could buy tax-free that way. But that exemption is keyed to a patient's prescription-based purchase, not the general retail sale the company asked about here. This GIL addresses the ordinary retail sale, which FYI Sales 68 treats as taxable.

What this means for you

Sellers of enteral pumps and similar medical equipment

Treat a plain retail sale of an enteral feeding pump as taxable and collect Colorado sales tax. Don't assume "medical equipment" is automatically exempt — Colorado's medical exemptions are item-specific, and FYI Sales 68 is the Department's go-to list of what's taxable vs. exempt. Check that list (or get a PLR) before treating any device as exempt.

Patients and prescribers

A patient buying a qualifying therapeutic device over $100 on a doctor's written recommendation may be able to purchase it exempt under § 39-26-717 — a different rule from the general retail sale addressed here. Keep the doctor's written recommendation if you intend to claim that exemption.

Accountants and tax professionals

The decisive authority for everyday medical-device taxability is FYI Sales 68's item-by-item list. Watch the line between a taxable retail sale and a patient's prescription-based therapeutic-device purchase (§ 39-26-717), which can flip the result for the same device.

Common questions

Q: Do we charge Colorado sales tax when we sell an enteral feeding pump? A: Yes. Retail sales of enteral pumps are taxable — FYI Sales 68 lists enteral pumps as "Taxable."

Q: Isn't medical equipment exempt?
A: Not categorically. Colorado's medical exemptions are item-specific. Enteral pumps are on the taxable side of FYI Sales 68.

Q: Is there any way an enteral pump is exempt?
A: Potentially when a patient buys a qualifying therapeutic device over $100 on a doctor's written recommendation (§ 39-26-717). That's a patient-purchase exemption, not the general retail sale this GIL addresses.

Citations and references

Statutes and publications:

• § 39-26-104(1), C.R.S. (sales tax on retail sales of tangible personal property)
• FYI Sales 68 (Medical and Dental Supplies and Materials — lists enteral pumps as "Taxable")

Related rulings

• [[plr-10-004-private-letter-ruling-dear]] — therapeutic-device exemption is keyed to patient purchases; provider is the consumer
• [[gil-13-012-sutures-and-iv-catheters]] — item-specific medical-supply taxability
• [[gil-12-009-durable-medical-equipment]] — DME exemption framework and limits

Source

• Landing page: https://tax.colorado.gov/sales-use-tax-letter-rulings
• Original PDF: https://tax.colorado.gov/sites/tax/files/documents/GIL-09-009.pdf

Original ruling text

Office of Tax Policy
P.O. Box 17087
Denver, CO 80217-0087
[email protected]

GIL-09-009
February 17, 2009

XXXXXXXXXXXXX
Attn: XXXXXXXXX
XXXXXXXXXXXXX
XXXXXXXXXXXXX
Re: enteral feeding pump
Dear XXXXXXXXX,
You request an opinion regarding the taxability of enteral feeding pumps sold by XXXXXXXX (“Company”). The Department promulgated a regulation governing the issuance of general information letters and private letter rulings. A general information letter provides a general overview of the applicable tax law and is not binding on the department. A private letter ruling is a determination of the applicability of tax to a specific set of circumstances and is binding in the department. A party requesting a private letter ruling must provide certain information and remit a fee. For more information about general information letters and private letter rulings, please refer to the Department’s regulation 24-35-103.5, C.R.S., which is available on our web site at: www.colorado.gov/revenue/tax. I will initially treat your request as one for a general information letter. You may resubmit this request for a private letter ruling. Issue Are retail sales of enteral feeding pumps subject to sales tax? Background The Company sells enteral feeding pumps. These are mechanical devices that provide enteral feeding by means of an electric pump. The pump has a number of settings that control the volume of food, priming, overinfusion safeguards, alarms, and control and display panels. Discussion. Colorado levies sales tax on the retail sale of tangible personal property. §39-26-104(1), C.R.S. There are a number of exemptions related to medical equipment. These exemptions are discussed in Department FYI Sales 68. Enteral pumps are listed on page 5 as “Taxable.” You can view this publication, as well as a host of other tax materials for taxpayers, by visiting

our web site at: www.revenue.state.co.us and click on Taxes > FYI / Publications > FYIs > Sales. Miscellaneous Enclosed is a redacted version of this ruling. Pursuant to statute and regulation, this redacted version of the ruling will be made public within 60 days of the date of this letter. Please let me know in writing within that 60 day period whether you have any suggestions or concerns about this redacted version of the ruling. Sincerely,

Office of Tax Policy
Colorado Department of Revenue