Were braille scanners, screen-reading software, video magnifiers, and similar devices for blind users exempt from Florida sales tax as prosthetic appliances?

Plain-English summary

The listed assistive devices were generally subject to Florida sales tax because they did not qualify as prosthetic or orthopedic appliances. The Department reached that conclusion after the Florida Department of Health said the products did not meet its criteria for that exemption.

The devices included braille optical scanners producing speech or braille output, software that read computer-screen content aloud, miscellaneous products for totally blind users, and video magnifiers for legally blind users.

An individual retail sale could still be exempt when made pursuant to a prescription from a duly licensed practitioner authorized to prescribe medicinal drugs. Sales to Florida dealers required a valid resale certificate, while government, library, rehabilitation, or welfare buyers needed a valid consumer's certificate of exemption.

What this means for you

An assistive purpose alone did not create the prosthetic-appliance exemption. Sellers had to identify a specific statutory path—such as a qualifying prescription, resale, or exempt-organization purchase—and retain the required documentation.

The ruling also placed the burden on the dealer to establish exemption status at the time of sale.

Common questions

Q: Were these products exempt merely because blind users relied on them? No. The Department found they did not meet the prosthetic or orthopedic appliance criteria.

Q: Could a prescribed sale be exempt? Yes, when made under a prescription from an authorized licensed practitioner as described in the ruling.

Q: Could an independent dealer buy them tax-free for resale? Yes, if registered and providing a properly executed resale certificate at the time of sale.

Q: Were sales to government agencies or public libraries automatically exempt? No. Those purchasers had to provide a consumer's certificate of exemption.

Citations and references

• Fla. Stat. § 212.05(1)(a)1.a. — tax on retail sales of tangible personal property
• Fla. Stat. § 212.08(2)(a)-(b) — medical, prescription, prosthetic, and orthopedic exemptions
• Fla. Admin. Code r. 12A-1.020(6) — medical products and prescription treatment
• Fla. Admin. Code r. 12A-1.038(1) — resale and consumer exemption certificates
• Fla. Stat. § 213.22 — Technical Assistance Advisements

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 97A-047

Original ruling text

SUMMARY

Assistive devices for use by persons who are totally blind include braille optical scanning equipment, which produces speech or braille output; software, which permits a blind person to "read" a computer screen by having its content spoken aloud to the user; and miscellaneous products for use by totally blind persons. Assistive devices for use by people who are legally blind and who are unable to read ordinary printed materials or standard print on a computer screen, consist of various types of video magnifiers. The Department in conjunction with the Florida Department of Health, has determined that the assistive devices for use by totally blind and legally blind persons do not meet the guidelines for prosthetic and orthopedic appliances and are therefore not specifically exempt from sales tax. Therefore, the sales of the assistive devices to totally blind or legally blind persons in Florida, are subject to tax unless sold pursuant to a prescription of a duly licensed practitioner authorized by the laws of the state to prescribe medicinal drugs. Sales of these products to independent dealers in Florida, are subject to tax unless the dealers are registered as sales tax dealers in this state, and the dealers extend a properly executed resale certificate to the selling dealer at the time of sale. Also, sales of these products to the state of Florida, local governments, public libraries, social rehabilitation and social welfare agencies are subject to tax unless the purchasers extend a consumer's certificate of exemption to the selling dealer when making such purchases.

Jul 10, 1997

Re: TAA 97A-047
Sales of Assistive Devices to
Totally Blind and Legally Blind Persons Sections 212.05(1)(a)1.a., 212.08(2)(a), 212.18(3), F.S.

Dear :

This is in response to your letter of March 4, 1997, in which you requested the issuance of a technical assistance advisement regarding your company's manufacture and sale of assistive devices for use by people who are totally blind or legally blind. You wish to know if your company's sales of these products are specifically exempt from sales tax as prosthetic or orthopedic appliances under section 212.08(2)(a), and (b), F.S., and Rule 12A-1.021(1)(b), F.A.C. You provided this office with brochures on the products in question.

Your company sells these products in the state of Florida by way of mail order and independent dealers located in the state. Your customers include individuals, the State of Florida, local governments, public libraries, and rehabilitation and social welfare agencies. You stated that, in some cases, your company sells the devices pursuant to written prescriptions of licensed practitioners.

The products for use by people who are totally blind consist of braille optical scanning equipment, which produces speech or braille output; software, which permits a blind person to "read" a computer screen by having its content spoken aloud to the user; and miscellaneous products for use by totally blind persons. The products for use by people who are legally blind and who are unable to read ordinary printed materials or standard print on a computer screen, are various types of video magnifiers.

APPLICABLE AUTHORITY

Section 212.05(1)(a)1.a., F.S., provides in part:

212.05 Sales, storage, use tax.--It is hereby declared to be the legislative intent that every person is exercising a taxable privilege who engages in the business of selling tangible personal property in this state....

(1) For the exercise of such privilege, a tax is levied on

each taxable transaction or incident, which tax is due and payable as follows:

(a)1.a. At the rate of 6 percent of the sales price of each item or article of tangible personal property when sold at retail in this state, computed on each taxable sale for the purpose of remitting the amount of tax due the state, and including each and every retail sale....

Rule 12A-1.038(1), F.A.C., provides:

(1) It is the specific legislative intent that each and every sale, admission, use, storage, consumption or rental is taxable under Chapter 212, F.S., unless such sale, admission, use, storage, consumption or rental is specifically exempt. The exempt status of the transaction must be established by the dealer. Unless the dealer shall have taken from the purchaser a certificate signed by the dealer or the dealer's authorized representative to the effect that the property or service was purchased for resale and bearing the date, the name and address of the purchaser, the effective date of the certificate, and the number of the dealer's certificate of registration, or a certificate signed by an authorized representative of the organization bearing the number of the organization's consumer's exemption certificate, the effective date of the certificate, and the expiration date of the certificate, the sale shall be deemed to be a taxable sale at retail,....

Section 212.08(2)(a),(b), 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....

(b) For the purposes of this subsection:

1. "Prosthetic and orthopedic appliances" means any
   apparatus, instrument, device, or equipment used to replace or substitute for any missing part of the body, to alleviate the malfunction of any part of the body, or to assist any disabled person in leading a normal life by facilitating such person's mobility. Such apparatus, instrument, device, or equipment shall be exempted according to an individual prescription or prescriptions written by a physician licensed under chapter 458, chapter 459, chapter 460, chapter 461, or chapter 466, or 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....

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; or

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

As we informed you in our letter of March 20, 1997, we forwarded the brochures you furnished us, on the products in question, to the Department of Health and asked for their help in determining if the products are considered to be prosthetic or orthopedic appliances for purposes of the exemption from tax afforded by section 212.08(2)(a), (b), F.S., and Rule 12A1.021(1)(b), F.A.C. Their response stated that the products do not meet their established criteria and guidelines for prosthetic or orthopedic appliances. As a consequence, the products are not specifically exempt from sales tax.

Therefore, your company's sales of the assistive devices to totally blind or legally blind persons are subject to tax under section 212.05(1)(a)1.a., F.S., unless sold pursuant to a prescription of a duly licensed practitioner authorized by the laws of the state to prescribe medicinal drugs. Your company's sales of these products to independent dealers in this state, are subject to tax unless the dealers are registered as sales tax dealers in this state, and the dealers extend a properly executed resale certificate to your company at the time of sale.

Also, your company's sales of these products to the state of Florida, local governments, public libraries, social rehabilitation and social welfare agencies are subject to tax unless the purchasers extend a consumer's certificate of exemption to your company when making such purchases.

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
Senior Tax Specialist
Technical Assistance & Dispute
Resolution

RSH/h
Control No. 28576