Was the HCG product described in the ruling exempt from Florida sales tax without a prescription?

Plain-English summary

The taxpayer requested the sales-tax treatment of an HCG product described in the ruling as used with diet protocols for obesity, metabolism, and appetite. The product was sold without requiring a prescription.

Florida treated the product as an exempt common household remedy. The Department relied on the Nontaxable Medical and General Grocery List, which included diuretics and dietary supplements, and concluded that the represented HCG product was used to control a person's diet.

The ruling therefore stated that the product was exempt from sales tax with or without a prescription. This was a 2010 tax classification based on the product description and list then in effect, not a medical assessment.

What this means for you

Medical-product tax treatment can depend on the precise product, label, represented use, and current Department list. A historical TAA does not establish the status of a differently formulated product or resolve current regulatory questions.

Common questions

Did the ruling require a prescription for exemption? No.

What exemption did Florida apply? The common-household-remedy exemption under section 212.08(2).

Did the ruling decide medical effectiveness? No. It decided only the stated sales-tax classification.

Citations and references

• Fla. Stat. § 212.08(2) and Fla. Admin. Code r. 12A-1.020, as discussed in the advisement.

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 10A-049

Original ruling text

SUMMARY
QUESTION: Taxpayer questions whether the sale of HCG, a non-prescription drug used to treat
obesity is exempt from sales tax as a common household remedy is exempt from sales tax purchase
of prescription pet food is exempt from sales tax when prescribed by a licensed veterinarian and
purchased in a pet store that has a veterinary clinic on the premises operating independently of the pet
store.
ANSWER: Section 212.08(2), F.S., provides an exemption for 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. The Nontaxable Medical and General Grocery List
(DR-46NT), incorporated by reference in Rule 12A-1.020, F.A.C., includes a list of common
household remedies that are specifically exempt from sales tax with or without a prescription. This
list includes diuretics. The DR-46NT also includes a list of exempt general grocery items. Under
this list are dietary supplements. In either case, it is clear that HCG is used to control a person’s diet
and would, therefore, be exempt from sales tax with or without a prescription.
November 22, 2010
XXX
Re:

Technical Assistance Advisement 10A-049
XXX (HGC)
Sales and Use Tax
Section 212.08(2), Florida Statutes (F.S.)
Rule 12A-1.020, Florida Administrative Code (F.A.C.)

Dear XXX:
This response is in reply to your letter to the Department, dated September 22, 2010, in which you are
requesting the Department's issuance of a Technical Assistance Advisement ("TAA") pursuant to s.
213.22, F.S., and Chapter 12-11, F.A.C., regarding the sales tax status of XXX (XXX). An
examination of your petition has established that you have complied with the statutory and regulatory
requirements for issuance of a TAA. Therefore, the Department is hereby granting your request for
issuance of a TAA.
As provided in Section 213.22(1), F.S., a technical assistance advisement may be issued to a taxpayer
who requests an advisement relating to the exemptions in Section 212.08(1) or (2), F.S., at any time.
Technical assistance advisements shall have no precedential value except to the taxpayer who
requests the advisement and then only for the specific transaction addressed in the technical
assistance advisement, unless specifically stated otherwise in the advisement.

Technical Assistance Advisement
Page 2
The product for which you seek guidance is XXX (XXX), a naturally occurring hormone produced
during pregnancy. When taken in conjunction with diet protocols, XXX triggers the loss of abnormal
body fat and is an effective treatment for obesity, low metabolism, and abnormal appetite.
Section 212.08(2), F.S., provides an exemption for 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. The Nontaxable Medical and General Grocery List (DR-46NT),
incorporated by reference in Rule 12A-1.020, F.A.C., includes a list of common household remedies
that are specifically exempt from sales tax with or without a prescription. This list includes diuretics.
The DR-46NT also includes a list of exempt general grocery items. Under this list are dietary
supplements. In either case, it is clear that XXX is used to control a person’s diet and would,
therefore, be exempt from sales tax with or without a prescription.
Based on our review of the product, it is exempt from sales tax pursuant to Section 212.08(2), F.S., as
a common household remedy.
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. Confidential information must be deleted before public disclosure. In an effort to
protect confidentiality, we request you provide the undersigned with an edited copy of your request
for Technical Assistance Advisement, the backup material and this response, deleting names,
addresses and any other details which might lead to identification of the taxpayer. Your response
should be received by the Department within 15 days of the date of this letter.
If you have any further questions with regard to this matter and wish to discuss them, you may
contact me directly at (850) 717-7202.
Sincerely,

Richard R. Parsons
Tax Law Specialist
Technical Assistance & Dispute Resolution
(850) 717-7202
Record ID: 90032