Were rentals of a Sysmex CS-2500 blood-coagulation analyzer and a Coulter DxH 800 hematology analyzer exempt from Florida sales tax as medical test kits?

Plain-English summary

Rentals of the Sysmex CS-2500 blood-coagulation analyzer and Coulter DxH 800 hematology analyzer were taxable. The Department concluded that the machines were not the kind of medical test kits exempted by section 212.08(2)(a), Florida Statutes.

The Sysmex machine tested coagulation factors and other blood characteristics. The Coulter machine performed clinical blood-cell screening. Even though Rule 12A-1.020(7)(a)5. mentions “blood analyzers,” the Department read that phrase in the context of an exemption for chemical compounds and test kits.

Because the two machines were equipment rather than collections of test-kit articles, the Department declined to extend the exemption to their rental.

Common questions

Did the machines' medical use make the rentals exempt? No. Diagnostic use alone did not make the equipment a qualifying test kit.

Why did the rule's reference to blood analyzers not control? The Department read that reference within the rule and statute's broader test-kit category.

Which machines were addressed? A Blood Coagulation Analyzer Model Sysmex CS-2500 and a Coulter DxH 800 Hematology Analyzer.

Citations and references

• Fla. Stat. § 212.08(2)(a)
• Fla. Admin. Code r. 12A-1.020(7)(a)5.
• State Department of Revenue v. Anderson, 403 So. 2d 397 (Fla. 1981)
• Green v. Pederson, 99 So. 2d 292 (Fla. 1957)
• Asphalt Pavers, Inc. v. Department of Revenue, 584 So. 2d 55 (Fla. 1st DCA 1991)

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 19A-020R

Original ruling text

QUESTION: Whether the rentals of a “Blood Coagulation Analyzer Model Sysmex CS-2500”
and a “Coulter® DxH 800 Hematology Analyzer” are exempt from taxation?
ANSWER: No, the rentals of a “Blood Coagulation Analyzer Model Sysmex CS-2500” and a
“Coulter® DxH 800 Hematology Analyzer” are not exempt from taxation.
January 27, 2023

Via email:
Re:

Technical Assistance Advisement – TAA #: 19A-020R
(“Taxpayer”)
Sales and Use Tax – Medical
Section 212.08, Florida Statutes (“F.S.”)
Rule 12A-1.020 Florida Administrative Code (“F.A.C.”)
FEI#:
BP #:

Dear

:

This is in response to your letter dated, July 30, 2019, requesting this Department’s issuance of a
Technical Assistance Advisement (“TAA”) pursuant to Section(s.) 213.22, F.S., and Rule Chapter
12-11 F.A.C, Florida Administrative Code, regarding the matter discussed below. Your request
has been carefully examined, and the Department finds it to be in compliance with the requisite
criteria set forth in Chapter 12-11, F.A.C. This response to your request constitutes a TAA and is
issued to you under the authority of s. 213.22, F.S.
REQUESTED ADVISEMENT
Whether Taxpayer’s rentals of a “Blood Coagulation Analyzer Model Sysmex CS-2500” and a
“Coulter® DxH 800 Hematology Analyzer” are exempt from taxation?
FACTS
The printouts attached to your e-mail explain that the automated Blood Coagulation Analyzer
Model Sysmex CS-2500 is a cap-piercing model that measures blood samples while the tubes

Technical Assistance Advisement
January 27, 2023
Page 2

within which the blood is contained remain closed. This machine is used to test thrombotic
tendency and for health monitoring. The testing parameters of the blood coagulation analyzer
include eight (8) parameters of coagulation factors and testing parameters for chromogenic
substrate, turbidimetric immunoassay, and agglutination. The Coulter® DxH 800 Hematology
Analyzer is used for in-vitro diagnostic screening of patient populations in clinical laboratories
and provides Complete Blood Cell (CBC) count, Leukocyte 5-Part Differential (Diff),
Reticulocyte (Retic), and Nucleated Red Blood Cell (NRBC) per cent on whole blood.
The Department has learned the following:
•

The U.S. Food and Drug Administration (“FDA”) regulates things such as the test kits and
devices at issue here under the Federal Food, Drug, and Cosmetic Act.

•

The Blood Coagulation Analyzer Model Sysmex CS-2500 can be found at the FDA’s
website at:
https://accessgudid.nlm.nih.gov/devices/00842768039522

•

The Coulter® DxH 800 Hematology Analyzer can be found at the FDA’s website at:
https://accessgudid.nlm.nih.gov/devices/15099590672423

•

By way of comparison, an exempt item, (A Thyroid Stimulating Hormone (TSH) test kit),
listed in the Rule at issue can be found at the FDA’s website at:
https://accessgudid.nlm.nih.gov/devices/20816467020086
LAW AND DISCUSSION

Section 212.08, F.S., provides, in pertinent part:
The sale at retail, the rental, the use, the consumption, the distribution, and the storage to
be used or consumed in this state of the following are hereby specifically exempt from the
tax imposed by this chapter.

(2) EXEMPTIONS; MEDICAL(a) …. chemical compounds and test kits used for the diagnosis or treatment of human
disease, illness or injury…
Emphasis added

Technical Assistance Advisement
January 27, 2023
Page 3

Rule 12A-1.020(7), F.A.C., states, in pertinent part:
(a) The sale of chemical compounds and test kits used for the diagnosis or treatment
of human disease, illness, or injury is exempt. The following is a nonexhaustive list of
chemical compounds and test kits that are not subject to tax:

5. Blood analyzers, blood collection tubes, lancets, capillaries, test strips, tubes containing
   chemical compounds, and test kits to test human blood for levels of albumin, cholesterol,
   HDL, LDL, triglycerides, glucose, ketones, or other detectors of illness, disease or injury;
   …

Emphasis added.
The rules of statutory construction are inapplicable here because s. 212.08(2)(a), F.S., is clear and
unambiguous; however, it should be pointed-out that Florida courts have consistently held that
exemptions must not be expanded beyond their express terms and must be strictly and narrowly
construed against the taxpayer. State Department of Revenue v. Anderson, 403 So.2d 397, 399
(Fla. 1981); Green v. Pederson, 99 So.2d 292, 296 (Fla. 1957); Asphalt Pavers, Inc. v. Department
of Revenue, 584 So.2d 55, 57 (Fla. 1st DCA 1991).
Section 212.08(2)(a), F.S., provides an exemption for test kits. Under an analysis of plain and
ordinary language or referring to such sources as the FDA website, both the “Blood Coagulation
Analyzer Model Sysmex CS-2500” and the “Coulter® DxH 800 Hematology Analyzer” are not
test kits. Merriam-Webster’s dictionary defines “kit” as follows: “1a(1) : a collection of articles
usually for personal use …” https://www.merriam-webster.com/dictionary/kit This should
conclude our analysis of the question of whether or not the Blood Coagulation Analyzer Model
Sysmex CS-2500 and Coulter® DxH 800 Hematology Analyzer are exempt from Florida Sales
and Use Tax.
Assuming there was any ambiguity in the term “test kits,” it would have to be interpreted narrowly
and as an exception in light of the other exemptions it is listed with – none of which include the
kind of immunoassay systems like the Blood Coagulation Analyzer Model Sysmex CS-2500 and
the Coulter® DxH 800 Hematology Analyzer described here. Rule 12A-1.020(7)(a)5., F.A.C.,
provides a specific exemption from Florida Sales and Use Tax on the sale or rental of “blood
analyzers.”
1. Although Rule 12A-1.020(7)(a)5., F.A.C., uses the term “blood analyzer,” that term must be
read in the context of the entire rule (which provides that test kits are exempt from Florida Sales
and Use Tax) and carries out the intent of the Legislature in s. 212.08(2)(a), F.S. (that only test kits
are exempt from Florida Sales and Use Tax).

Technical Assistance Advisement
January 27, 2023
Page 4

2. The Department does not view the Blood Coagulation Analyzer Model Sysmex CS-2500 and
   Coulter® DxH 800 Hematology Analyzer, as described, to be “blood analyzers” that would be
   exempt from Florida Sales and Use Tax because both the Blood Coagulation Analyzer Model
   Sysmex CS-2500 and Coulter® DxH 800 Hematology Analyzer, may analyze blood, neither fall
   into the larger and qualifying category of a test kit.
   CONCLUSION
   Taxpayer’s rentals of a “Blood Coagulation Analyzer Model Sysmex CS-2500” and a “Coulter®
   DxH 800 Hematology Analyzer” are not exempt from Florida Sales and Use Tax.
   This response constitutes a TAA under s. 213.22, F.S., which is binding on the Department only
   under the 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 TAA, 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 ten (10) 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)717-6363.
   Sincerely,

Leigh L. Ceci
Leigh L. Ceci
Tax Law Specialist
Technical Assistance & Dispute Resolution
(850)717-6363
cc

Record ID: 7000865797

Technical Assistance Advisement
January 27, 2023
Page 5

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