Were diagnostic kits used by veterinarians and laboratories to detect viruses, bacteria, protozoa, or parasites in animals exempt from Florida sales tax?

Subject

Test Kits - Animals

Plain-English summary

The veterinary diagnostic test kits were taxable. Section 212.08(2)(a) exempted chemical compounds and test kits used for diagnosing or treating human disease, illness, or injury, not products used on animals.

Use only by veterinary clinics and laboratories, rather than sale to the general public, did not extend the human medical exemption.

What this means for you

The product's diagnostic function was not enough. The ruling made the patient—human or animal—the decisive distinction for this exemption.

Common questions

Q: Were animal disease test kits exempt? No.

Q: Did restricted professional use help? No.

Q: What test kits did the cited statute exempt? Those used for diagnosing or treating human disease, illness, or injury.

Citations and references

• Fla. Stat. § 212.08(2)(a) — medical products and human diagnostic test kits
• Fla. Admin. Code r. 12A-1.020(7) — chemical compounds and test kits
• Fla. Stat. § 213.22 — Technical Assistance Advisements

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 01A-043

Original ruling text

SUMMARY

QUESTION: What is the taxable status of diagnostic test
kits used by veterinarians to detect disease in animals?

ANSWER - Based on Facts Below: Section 212.08(2)(a), F.S.,
only exempts from tax chemical compounds and test kits
which are used for the diagnosis or treatment of human
disease, illness, or injury. Diagnostic test kits are
exempt from tax only when used on humans, and would be
taxable when used on animals.

Jul 26, 2001

Re: Technical Assistance Advisement 01A-043
Sales and Use Tax - Test Kits
Section: 212.08(2), F.S.
Rule 12A-1.020(7), F.A.C.

Dear :

This is in response to your letter of May 25, 2001, in which you
request the issuance of a Technical Assistance Advisement
concerning the taxable status of "various animal disease
diagnostic test kits that have been developed in the last decade
to assist veterinarians in establishing or ruling out infections
and infestation of animals which may be caused by certain
viruses, bacteria, protozoa or parasites." Your letter further
provides, in part:

We would like to point out that these veterinary diagnostic
test kits, which are used solely by various veterinary
clinics and veterinary laboratories, should not confused
with the various human test kits referenced in s.
212.08(2)(a), which can be purchased as over-the counter by
the general public at various drug stores and pharmacies.

There appears to be a difference of opinion among members

of your Department as to the sales tax status of these
veterinary diagnostic kits. Since these veterinary
diagnostic test kits meet the criteria of Rule [12A1].020(7)(a) and, since they are not sold to the general
public, we feel that these kits should be sales tax
exempt....

Applicable Authority

Section 212.08(2)(a), F.S., provides in part:

(2) EXEMPTIONS; MEDICAL.-

(a) There shall be exempt from the tax imposed by this
chapter any medical products and supplies or medicine
dispensed according to an individual prescription or
prescriptions written by a prescriber authorized by law to
prescribe medicinal drugs; hypodermic needles; hypodermic
syringes; chemical compounds and test kits used for the
diagnosis or treatment of human disease, illness, or
injury; and common household remedies recommended and
generally sold for internal or external use in the cure,
mitigation, treatment, or prevention of illness or disease
in human beings, but not including cosmetics or toilet
articles, notwithstanding the presence of medicinal
ingredients therein, according to a list prescribed and
approved by the Department of Health, which list shall be
certified to the Department of Revenue from time to time
and included in the rules promulgated by the Department of
Revenue.... (Emphasis Supplied)

Rule 12A-1.020, F.A.C., provides in part:

(7)(a) The chemical compounds and test kits specified in
this paragraph which are used for the diagnosis or
treatment of disease, illness or injury are specifically
exempt. Examples of chemical compounds and test kits
include, but are not limited to the following: Albustix
reagent strips and tablets; blood pressure units;
cholesterol tests; clinistix reagent strips; clinitest
tablets; combistix reagent strips; dextrostix, reagent

strips; dextrotest kit and refills; diabetic test kits;
galatest; ictotest reagent tablets; sugar test tablets for
diabetics; thermometers for human use; tuberculin patch
test; urine testing kits; urograph test.

(b) Likewise exempt is any chemical compound and test kit
used for the diagnosis or treatment of disease, illness, or
injury, ordered and dispensed in a retail establishment by
a pharmacist licensed by the State of Florida, according to
an individual prescription or prescriptions written by a
duly licensed practitioner authorized by the laws of the
state to prescribe medicinal drugs.

DEPARTMENT RESPONSE

Section 212.08(2)(a), F.S., only exempts from tax chemical
compounds and test kits which are used for the diagnosis or
treatment of human disease, illness, or injury. The rule is
silent as to whether the exemption is to apply to just human use
or whether it would include use on animals. The statute would
control, and therefore, the diagnostic test kits are exempt from
tax only when used on humans, and would be taxable when used on
animals.

CLOSING STATEMENT

This response constitutes a Technical Assistance Advisement
under s. 213.22, F.S. which is binding on the department only
under facts and circumstances described in the request for this
advice as specified in s. 213.22, F.S. Our response is
predicated on those facts and the specific situation summarized
above. You are advised that subsequent statutory or
administrative rule changes or judicial interpretations of the
statutes or rules upon which this advice is based may subject
similar future transactions to a different treatment than
expressed in this response.

You are further advised that this response, your request and
related backup documents are public records under Chapter 119,
F.S., and are subject to disclosure to the public under the
conditions of s. 213.22, F.S. Ordinarily, confidential

information, such as the identity of the person to whom an
advisement is issued, must be deleted before public disclosure.
In the situation in which a taxpayer association is seeking an
advisement on behalf of its members, having the identity of the
requesting association remain in the published advisement is
useful to those using the advisement for guidance. No specific
taxpayer information is included in an advisement issued to a
taxpayer association, and concerns about protecting proprietary
information are not present under such circumstances. However,
in light of statutory requirements as to confidentiality, a
taxpayer association must give its consent to the Department to
allow its name to be included in the published advisement. The
taxpayer association to which this advisement is issued has
given written consent to allow the disclosure of its identity.

Sincerely,

Jonathan E. Swift
Tax Law Specialist
Technical Assistance and Dispute Resolution
(850) 922-4840

Control #45648