Were a surgical hemostat, a blood-analysis stain, and medicated pre-surgery scrubbrushes exempt from Florida sales tax?

Subject

Medical Products

Plain-English summary

The hemostat and B-R-I blood stain were exempt, but the medicated scrubbrushes were taxable. The hemostat was a medicated material placed inside a surgical patient and later absorbed, so it qualified as a medical product incorporated into a patient by a licensed practitioner.

The B-R-I stain changed blood-cell colors so a laboratory technician could analyze the white blood-cell count. The Department treated it as an exempt chemical compound used for diagnosis.

The scrubbrushes doctors used to clean their hands before surgery were taxable medical products or supplies used in connection with medical treatment, with no specific exemption identified.

What this means for you

Medical use alone did not make every product exempt. The ruling distinguished an incorporated product and a diagnostic chemical from a general medical supply used by practitioners.

Common questions

Q: Why was the hemostat exempt? It was temporarily or permanently incorporated into the patient by a licensed practitioner.

Q: Why was the blood stain exempt? It was a chemical compound used for diagnosis.

Q: Why were medicated scrubbrushes taxable? They were medical supplies used in connection with treatment but did not fit a specific exemption.

Citations and references

• Fla. Stat. § 212.08(2)(a) — medical exemptions
• Fla. Admin. Code r. 12A-1.020(6)(a), (b), (7) — medical supplies and diagnostic compounds
• Fla. Stat. § 213.22 — Technical Assistance Advisements

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 93A-039

Original ruling text

Jun 25, 1993

Re: TAA 93A-039
Medical Products
Section 212.08(2)(a), F.S.
Rule 12A-1.020(6)(a),(b) and (7), F.A.C.

Dear :

This is in response to your letter of June 11, 1993, in
which you requested the issuance of a technical assistance
advisement regarding the taxable or exempt status of certain
products listed therein.

Your letter provides in part:

"We are a distributor of medical supplies. The following
items are not specifically addressed in the sales tax laws and
therefore, we would appreciate a ruling in regard to the sales
tax status of the following three items:

"1. Hemostat - Attached are two pages of the XXX product
book. A hemostat is utilized during surgery. It is a
material which is impregnated with medication. It
helps the blood clot and is kept inside the body.
Depending on the type of hemostat, it will be absorbed
into the body in a certain number of days. Therefore,
it is never removed.
"2. B-R-I Stain - This is a stain used in the laboratory.
It is used to test human whole blood. The stain will
turn the cells different colors which will allow the
laboratory technician to analyze the white blood cell
count.
"3. Medicated scrubbrushes - These brushes are utilized by
doctors to scrub their hands prior to surgery."

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 product, supply, or medicine dispensed in a
retail establishment by a pharmacist licensed by the state,
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 and Rehabilitative Services, 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. There shall also be exempt from the
tax imposed by this chapter artificial eyes and limbs;
orthopedic shoes; prescription eyeglasses and items
incidental thereto or which become a part thereof;
dentures; hearing aids; crutches; prosthetic and orthopedic
appliances; and funerals...." (Emphasis Supplied)

Rule 12A-1.020(7), F.A.C., provides:

"(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."

Rule 12A-1.020(6)(a) and (b), F.A.C., provides:

"(6)(a) Medical products and supplies used in the cure,
mitigation, alleviation, prevention or treatment of injury,
illness, disease or incapacity are taxable, unless:
"1. Temporarily or permanently incorporated into a patient
or client by a practitioner of the healing arts licensed by
the State of Florida.
"2. Ordered and dispensed by or on the prescription of a
duly licensed practitioner authorized by the laws of the
state to prescribe medicinal drugs;
"3. Ordered and dispensed by a pharmacist pursuant to the
established dispensing procedures determined by the joint
committee of medical, osteopathic and pharmacy professions
as created by section 465.186, F.S.
"(b) The sale of medical products or supplies to
physicians, dentists, veterinarians and hospitals is
taxable even though the medical products or supplies may be
used in connection with medical treatment, unless the
products and supplies are specifically exempt from tax
under this rule or in Rule 12A-1.021, F.A.C."

DEPARTMENT RESPONSE

The Hemostat described in your letter with attached
brochure is exempt from tax as noted in Rule 12A-1.020(6)(a)1.,
F.A.C., as a medical product which is temporarily or permanently
incorporated into a patient by a practitioner of the healing
arts licensed by the state of Florida.

The exemption from tax for the B-R-I Stain is found in
section 212.08(2)(a), F.S., and Rule 12A-1.020(7)(b), F.A.C.,
which provides that chemical compounds and test kits which are
used for the diagnosis or treatment of disease, illness, or

injury are exempt from tax.

The Medicated scrubbrushes are subject to tax as seen in
Rule 12A-1.020(6)(b), F.A.C., as medical products and supplies
used in connection with medical treatment.

This response constitutes a Technical Assistance Advisement
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 and your request
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 notify the undersigned in
writing within 15 days of any deletions you wish made to the
request or the response.

Sincerely,

Richard S. Harrod
Technical Assistant

RSH/pb
Con. #9333