Were single-use plasma-preparation blood collection tubes used for physician-ordered diagnostic testing exempt from Florida sales tax?

Plain-English summary

Florida ruled that the described plasma-preparation blood collection tubes were exempt from sales tax. The tubes supported physician-ordered molecular diagnostic testing and qualified under two related parts of the medical-products exemption.

The single-use plastic evacuated tube collected venous blood. It contained EDTA anticoagulant and a separation material that, after centrifugation, created a barrier between plasma and blood cells. That preparation was necessary because the cited HIV viral-load and other molecular tests could not be performed when blood cells remained in the sample.

The tubes worked with expressly exempt injection equipment

Section 212.08(2)(a) expressly exempted hypodermic needles and syringes. The Department concluded that blood collection tubes working in conjunction with those exempt items were also exempt.

The diagnostic chemicals provided a second basis

The EDTA and plasma-separation material also brought the tube within the exemption for chemical compounds and test kits used for diagnosing or treating human disease, illness, or injury.

The ruling was product-specific. It did not say every blood tube or specimen container was exempt without the described diagnostic function and contents.

What this means for you

Medical-product sellers

Keep product literature showing the tube's additives, one-time use, role with needles and syringes, and diagnostic purpose. The exemption rested on those details.

Diagnostic laboratories and physicians

The ruling addressed tubes used to prepare plasma for physician-ordered molecular testing, including the stated HIV viral-load use.

Accountants and tax professionals

Do not classify by the generic label “blood collection tube” alone. Review the tube's chemistry and diagnostic function.

Common questions

Q: Were the plasma-preparation tubes taxable?
A: No. The Department found them exempt.

Q: What did the tubes contain?
A: EDTA anticoagulant and separation material used to isolate plasma from blood cells.

Q: What testing did the ruling describe?
A: HIV viral-load and other molecular diagnostic testing ordered by a licensed physician.

Q: Did the ruling exempt every specimen tube?
A: No. Its conclusion was tied to this product's contents and diagnostic use.

Citations and references

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

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 04A-009

Original ruling text

SUMMARY

QUESTION: What is the taxable status of Vacutainer blood
collection tubes used by licensed physicians?

ANSWER - Based on Facts Below: Blood collection tubes that
work in conjunction with hypodermic needles and hypodermic
syringes (which are specifically exempt) would also be
exempt from tax. Further, because the tubes contain
anticoagulants and chemicals used to separate the plasma,
the exemption for "chemical compounds and test kits used
for the diagnosis or treatment of human disease, illness,
or injury" would also apply.

Feb 10, 2004

Re: Technical Assistance Advisement 04A-009
XXX ("Taxpayer")
Sales and Use Tax
Medical Products - Blood Collection Tubes
Section 212.08(2), F.S.
Rule 12A-1.020, F.A.C.

Dear :

This is in response to your letter of December 16, 2003, and
related attachments, in which you request the issuance of a
Technical Assistance Advisement regarding the application of
Florida sales and use tax to blood collection tubes used in
performing diagnostic testing, ordered by a licensed physician.
Your letter dated December 17, 2003, further provides:

... These tests are performed on patients with Medicare and
other types of insurance coverage. These tubes in question
are Vacutainer PPT (Plasma Preparation Tubes). The tube
consists of EDTA (Anticoagulant) and a separation material
that will create a barrier to separate the plasma from the
blood cells. If blood cells are present the test cannot be

performed on the sample.

This tube is needed to prepare blood for testing of HIV
viral Load and other molecular diagnostic testing.

The literature accompanying the product indicates that the item
is for one-time use, and it further provides:

The BD Vacutainer PPT plasma Preparation Tube (PPT Tube) is
a plastic evacuated tube for the collection of venous blood
which upon centrifugation separates undiluted plasma for
use in molecular diagnostic test methods....

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;.... (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.

DISCUSSION AND CONCLUSION

Based on the above citations, blood collection tubes that work
in conjunction with hypodermic needles and hypodermic syringes
(which are specifically tax exempt) would also be exempt from
tax. Further, because the tubes contain anticoagulants and
chemicals used to separate the plasma, the exemption for
"chemical compounds and test kits used for the diagnosis or
treatment of human disease, illness, or injury" would also
apply.

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., which are subject to disclosure to the public under the
conditions of s. 213.22, F.S. Your name, address, and any other
details which might lead to identification of the taxpayer must
be deleted by the Department before disclosure. In an effort to
protect the confidentiality of such information, we request you
provide the undersigned with an edited copy of your request for

Technical Assistance Advisement, backup material and response
within fifteen days of the date of this advisement.

Sincerely,

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

Control #58068