Are a dental laboratory's charges to dentists for bite blocks, models, and impression trays used to make dentures, crowns, and bridges subject to New York sales tax?

Plain-English summary

A dental laboratory that manufactures dentures, partial dentures, crowns, bridges, and other prosthetic devices for dentists asked whether its charges for bite blocks, models, and impression trays -- items used at various stages of production, and separately itemized on its bills -- are subject to New York sales tax. The lab bills dentists either in one lump sum or on an "a la carte" basis as production milestones are completed.

The Department confirmed dentures, crowns, bridges, and similar devices are exempt "prosthetic aids" under Tax Law § 1115(a)(4), so the lab's charges for them aren't taxable regardless of the billing method. The key insight for the bite blocks, models, and impression trays: even though they're separately itemized on the bill (and the dentist may briefly take physical possession of some of them, like a final impression tray), the dentist isn't really buying these items -- they're tools and materials the lab consumes in the process of manufacturing the exempt prosthetic device. So charges for them are exempt right along with the device itself. Separately, these same items may also qualify as exempt production supplies for the lab's own purchases, since they're used directly in manufacturing tangible personal property for sale. The one carve-out: if the lab is instead simply selling bite blocks, models, or impression trays to a dentist for the dentist's own chairside use in treating patients (not as part of the lab's own production of a prosthetic device), that sale is an ordinary taxable sale of medical/dental supplies.

What this means for you

Dental laboratories

Itemizing production-stage materials (impression trays, models, bite blocks) as separate line items on a bill to a dentist doesn't make them taxable, as long as they're genuinely part of your own production process for an exempt prosthetic device -- the exemption follows the finished prosthetic device through to these constituent charges. Keep your billing practices and production records consistent with that story.

Dentists and dental practices

If you're buying bite blocks, models, or trays directly from a supplier for your own chairside use (not as part of ordering a denture, crown, or bridge from a lab), expect that purchase to be taxed as an ordinary dental supply -- the exemption here is tied to the lab's production process, not to the item itself.

Accountants and tax professionals

This ruling is a good illustration of how New York's prosthetic-aid exemption (§ 1115(a)(4)) can pull related billed-but-not-really-sold production items along with it, distinct from the separate production-supplies exemption (§ 1105-B, § 1115(a)(12)) that would apply to the lab's own purchases of the same materials.

Common questions

Q: Are dentures, crowns, and bridges taxable when a dental lab sells them to a dentist?
A: No -- they're exempt prosthetic aids under Tax Law § 1115(a)(4), regardless of whether billed as one lump sum or in installments.

Q: Is a dental lab's separately itemized charge for bite blocks, models, or impression trays taxable?
A: No, as long as they're used by the lab in its own process of producing the exempt prosthetic device for the dentist -- the dentist isn't treated as buying these items even if billed as line items.

Q: What if a lab sells bite blocks or impression trays directly to a dentist for the dentist's own use with patients?
A: That's a taxable sale of medical/dental supplies, since it's not part of the lab's production of an exempt prosthetic device.

Q: Are these production items exempt for the lab's own purchases too?
A: They may qualify separately as exempt production supplies or equipment if used directly and predominantly in manufacturing the prosthetic devices for sale.

Citations and references

Statutes and guidance:

• Tax Law § 1105(a) (tax on retail sales of tangible personal property)
• Tax Law § 1105-B (production parts, tools, and supplies exemption)
• Tax Law § 1115(a)(3) (medical equipment and supplies exemption)
• Tax Law § 1115(a)(4) (prosthetic aids exemption)
• Tax Law § 1115(a)(12) (production machinery and equipment exemption)
• 20 NYCRR 526.6(c)(7) (property purchased for a nontaxable service isn't purchased for resale)
• 20 NYCRR 528.4(e), (h) (medical equipment; taxable when purchased for compensated medical services)
• 20 NYCRR 528.5 (prosthetic aids)
• Publication 822, Taxable Status of Medical Equipment and Supplies, Prosthetic Devices and Related Items

Source

• Landing page: https://www.tax.ny.gov/pubs_and_bulls/advisory_opinions/sales_ao_2005.htm
• Opinion: https://www.tax.ny.gov/pdf/advisory_opinions/sales/a05_29s.pdf

Original ruling text

New York State Department of Taxation and Finance

TSB-A-05(29)S
Sales Tax
July 21, 2005

Office of Tax Policy Analysis
Technical Services Division
STATE OF NEW YORK
COMMISSIONER OF TAXATION AND FINANCE
ADVISORY OPINION

PETITION NO. S040702A

On July 2, 2004, the Department of Taxation and Finance received a Petition for
Advisory Opinion from Sentage Corporation/D.P./Mt. Vernon, 5775 Wayzata Blvd. #670,
Minneapolis, MN 55416. Petitioner, Sentage Corporation/D.P./Mt. Vernon, furnished additional
information with respect to the Petition on October 12, 2004.
The issue raised by Petitioner is whether Petitioner’s charges for bite blocks, models and
impression trays billed to dentists during the process of making artificial teeth, dentures, partial
dentures, crowns and bridges are subject to New York State sales tax.
Petitioner submitted the following facts as the basis for this Advisory Opinion.
Petitioner is a dental laboratory which manufactures and sells various dental equipment
and supplies and prosthetic devices. Such items include orthodontic devices (i.e., TMJ splints,
positioners, retainers, etc.), artificial teeth, dentures, partial dentures, crowns (permanently
attached by a dentist), bridges and space maintainers. With respect to the artificial teeth,
dentures, partial dentures, crowns and bridges, Petitioner has two separate billing procedures.
1.

Petitioner bills the dentist one “lump sum” for the artificial teeth, dentures, partial
dentures, crowns and bridges.

2.

Petitioner bills the dentist, upon the dentist’s request, on an “a la carte” basis. The
dentist requests this installment billing method in order to be reimbursed
concurrently with the steps of performing his or her service, either directly by the
patient or the insurance company. This means Petitioner bills the dentist for the
purchase of the artificial teeth, dentures, etc., as work progresses in the process of
creating these items.

Petitioner provided the following description of the steps in the production process of
removable acrylic dentures:
1.

Dentist sends a preliminary impression to Petitioner’s lab to be “boxed” and
“poured” in stone.

2.

An acrylic tray is made from the preliminary stone cast for use as a final
impression tray.

3.

Dentist receives final tray and takes final impression with this tray which is sent
back to lab.

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4.

Lab receives final impression taken by dentist, it is boxed and poured in stone and
a bite block, or bite rim as it is sometimes called, is fabricated. The bite block is
typically a base plate with a wax or compound rim.

5.

Dentist receives the bite block, and takes the patient’s “bite registration” which
records vertical dimension.

6.

Dentist sends bite registration back to Petitioner’s lab.

7.

Bite registration and stone casts are mounted on an articulator and are now ready
for tooth selection.

8.

After appropriate teeth are selected, the bite registration and stone casts are set in
wax on articulated casts which are used to make “set-up” teeth.

9.

Dentist receives the “set-up” teeth and tries them in the patient’s mouth to ensure
that the bite taken was correct and that they are esthetically pleasing to the patient.

10.

Dentist sends approved set-up teeth back to lab.

11.

Lab receives approved set-up teeth and proceeds to make a wax denture which is
then made into an acrylic denture.

12.

After curing, denture is finished and polished and is ready to be sent to dentist for
final insertion.

Additionally, Petitioner describes the most common steps for the production of crowns
and bridges as follows:
1.

Once the impression is received from the dentist all of the necessary models and
dies are fabricated.

2.

From these dies and models, the various types of prosthetics are made.

3.

Once the crown or bridge is completed, it is sent to the dentist to check and see if
the bite, margins and fit are proper. It is much harder to adjust the device without
the use of models.

4.

In some cases, if there is more work to be done, additional impressions must be
taken by the dentist, and more models may have to be made for additional
changes. It is not possible to fabricate the crown or bridge without model work.

Petitioner provided sample copies of its bills to dentists. These bills disclosed most of the
steps in the lump sum billing procedure as separate line items (i.e., impression trays, models, bite

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blocks), all being provided for a single charge. The a la carte billing showed a majority of the
same separate line items. Under the a la carte billing, these line items were billed on several
separate invoices at various time intervals, reflecting the progress of the services provided to the
patients.
Applicable law and regulations
Section 1105(a) of the Tax Law imposes sales tax upon "[T]he receipts from every retail
sale of tangible personal property, except as otherwise provided in this article."
Section 1105-B of the Tax Law provides, in part:
(a) Receipts from the retail sales of parts with a useful life of one year or less,
tools and supplies for use or consumption directly and predominantly in the production of
tangible personal property . . . for sale by manufacturing, processing . . . shall be exempt
from the tax imposed by subdivision (a) of section eleven hundred five of this article.
(b) Receipts from every sale of the services of installing, repairing, maintaining or
servicing the tangible personal property described in paragraph twelve of subdivision (a)
of section eleven hundred fifteen of this article, including the parts with a useful life of
one year or less, tools and supplies described in subdivision (a) of this section, to the
extent subject to such tax, shall be exempt from the tax on sales imposed under
subdivision (c) of section eleven hundred five of this article.
Section 1115(a) of the Tax Law provides, in part:
Receipts from the following shall be exempt from the tax on retail sales
imposed under subdivision (a) of section eleven hundred five and the
compensating use tax imposed under section eleven hundred ten:
*

*

*

(3) Drugs and medicines intended for use, internally or externally, in the
cure, mitigation, treatment or prevention of illnesses or diseases in human beings,
medical equipment (including component parts thereof) and supplies required for
such use or to correct or alleviate physical incapacity, and products consumed
by humans for the preservation of health but not including cosmetics or toilet
articles notwithstanding the presence of medicinal ingredients therein or medical
equipment (including component parts thereof) and supplies, other than such
drugs and medicines, purchased at retail for use in performing medical and
similar services for compensation.

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(4) Prosthetic aids, hearing aids, eyeglasses and artificial devices and
component parts thereof purchased to correct or alleviate physical incapacity in
human beings.
*

*

*

(12) Machinery or equipment for use or consumption directly and predominantly
in the production of tangible personal property, gas, electricity, refrigeration or steam for
sale, by manufacturing, processing, generating, assembling, refining, mining or
extracting, but not including parts with a useful life of one year or less or tools or supplies
used in connection with such machinery or equipment.…
Section 526.6 of the Sales and Use Tax Regulations provides, in part:
(a) The term retail sale or sale at retail means the sale of tangible personal
property to any person for any purpose, except as specifically excluded.
*

*

*

(c) (7) Tangible personal property purchased for use in performing a service not
subject to tax is not purchased for resale.

Section 528.4 of the Sales and Use Tax Regulations provides, in part:
(a) Exemption. (1) Drugs and medicines intended for the use, internally or
externally in the cure, mitigation, treatment or prevention of illnesses or diseases
in human beings, medical equipment (including component parts thereof) and
supplies required for such use or to correct or alleviate physical incapacity, and
products consumed by humans for the preservation of health are exempt.
*

*

*

(e) Medical equipment. (1) Medical equipment means machinery,
apparatus and other devices (other than prosthetic aids, hearing aids, eyeglasses
and artificial devices which qualify for exemption under section 1115(a) (4) of the
Tax Law), which are intended for use in the cure, mitigation, treatment or
prevention of illnesses or diseases or the correction or alleviation of physical
incapacity in human beings.
(2) To qualify, such equipment must be primarily and customarily used for
medical purposes and not be generally useful in the absence of illness, injury or
physical incapacity.

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*

*

*

(g) Supplies. (1) Supplies used in the cure, mitigation, treatment or
prevention of illnesses or diseases or for the correction and alleviation of physical
incapacity are exempt.
*

*

*

(h) Taxable medical equipment and supplies. (1) Medical equipment and
supplies purchased for use in performing medical or similar services for
compensation are not exempt from tax.
*

*

*

(2) Medical services for human beings include but are not limited to the
practices of medicine, dentistry, physical therapy, chiropractic, nursing, podiatry,
optometry and radiology, whether performed by a private practitioner, clinical
laboratory, hospital, nursing home, ambulance service, clinic, or health
maintenance facilities.
Section 528.5 of the Sales and Use Tax Regulations provides, in part:
Prosthetic aids. (a) Exemption. Prosthetic aids, hearing aids, eyeglasses
and artificial devices and component parts thereof, purchased to correct or
alleviate physical incapacity in human beings are exempt from the tax.
(b) Qualifications. (1) In order to qualify as a prosthetic aid, a hearing aid,
eyeglasses or an artificial device, the property must either completely or partially
replace a missing body part or the function of a permanently inoperative or
permanently malfunctioning body part and must be primarily and customarily
used for such purposes and not be generally useful in the absence of illness, injury
or physical incapacity.
Example 1: Artificial hands, arms, legs, false teeth, etc. are exempt.
*

*

*

Example 4: A crown which is permanently attached to a tooth by a dentist is
exempt.
Opinion
Petitioner is a dental laboratory which manufactures and sells various dental equipment
and supplies. Petitioner offers dentists purchasing artificial teeth, dentures, partial dentures,

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crowns and bridges the choice of two different billing options. Petitioner will bill the dentist the
full purchase price of the artificial teeth, dentures, partial dentures, crowns and bridges being
manufactured in a single lump sum amount or Petitioner will bill the dentist as the work
progresses. The progress payments are otherwise known in the dental industry as “a la carte”
billing. The a la carte billing separately states individual charges at various intervals in the
production process.
Petitioner’s production process differs somewhat for artificial teeth, dentures, partial
dentures, crowns and bridges, but in each case the process begins with the dentist initially
making a dental impression of the patient’s mouth. This initial impression is sent to Petitioner’s
lab. The lab uses this initial impression to make a model or final impression which may again be
sent back to the dentist for a bite registration. Once all of the necessary impressions, models and
bite registrations are returned to the lab, the lab can continue the process of creating the artificial
teeth, dentures, partial dentures, crowns and bridges. As part of this process, Petitioner prepares
dentures with waxed up denture teeth, which are sent to the dentist to physically verify with the
patient that the denture has the appropriate fit and bite. Crowns and bridges are similarly sent to
the dentist to physically check the fit in the patient’s mouth. After the dentist has verified that
the denture’s fit is correct, the denture is returned to the lab and the lab processes it in acrylic. If
the dentist finds the dentures, crowns or bridge do not fit correctly, these items will be sent back
to the lab for further processing. The lab then sends the final products back to the dentist for the
final patient insertion. Petitioner’s production process for artificial teeth, dentures, partial
dentures, crowns and bridges is the same whether the dentist opts to be billed on the lump sum or
a la carte basis.
Artificial teeth, dentures, partial dentures, crowns and bridges are prosthetic aids or
devices for purposes of section 1115(a)(4) of the Tax Law. See section 528.5 of the Sales and
Use Tax Regulations and Taxable Status of Medical Equipment and Supplies, Prosthetic Devices
and Related Items, Publication 822 (6/01) at page 5. Therefore, Petitioner’s charges to a dentist
for artificial teeth, dentures, crowns and bridges are exempt from sales tax as provided for under
section 1115(a)(4), whether the dentist makes one lump sum payment or makes several payments
over time.
The bite blocks, models and impression trays are items used by Petitioner in its process of
producing the prosthetic devices. While for billing purposes these items may be individually
noted on Petitioner’s bill to the dentist, these items are not being purchased by the dentist. These
items are used by Petitioner in conjunction with the production of the artificial teeth, dentures,
crowns and bridges. As such, these items are expenses incurred by Petitioner in manufacturing
artificial teeth, dentures, crowns and bridges for sale. Petitioner’s charges to dentists for these
items, therefore, are exempt from sales tax under section 1115(a)(4) of the Tax Law, despite the
fact that the dentist may take possession of these items.
It should be noted that the bite blocks, models and impression trays may qualify as
exempt production supplies or equipment used and consumed by Petitioner in its production of
the prosthetic devices it sells to the dentist. Petitioner’s purchases of these items, therefore, are

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exempt from sales and use tax if used directly and predominantly in the production of tangible
personal property for sale. See sections 1105-B and 1115(a)(12) of the Tax Law.
Petitioner states that, in addition to selling prosthetic aids, it is also in the business of
selling dental equipment and supplies. Similarly sales of bite blocks, models, and impression
trays by Petitioner to dentists for use in providing dental services to their patients, rather than
Petitioner providing these items to the dentist in conjunction with Petitioner’s production of
artificial teeth, dentures, crowns and bridges, are sales of medical supplies or equipment. Sales
of these items to a dentist for use in performing dental services for compensation are not exempt
under section 1115(a)(3) of the Tax Law and will be subject to sales and use tax under section
1105(a). See section 528.4(h) of the Sales and Use Tax Regulations. Sales of these items to a
dentist are not exempt under section 1105-B or 1115(a)(12) of the Tax Law, since these items are
not used by the dentist in the production of tangible personal property for sale.

DATED: July 21, 2005

NOTE:

/s/
Jonathan Pessen
Tax Regulations Specialist IV
Technical Services Division

The opinions expressed in Advisory Opinions
are limited to the facts set forth therein.