The new OTC drugs and medicines exemption covers diabetic test strips — does it also cover the lancets used in diabetic monitoring machines?

Plain-English summary

Ahead of the April 1, 2000 effective date of the new over-the-counter drugs and medicines exemption, someone emailed the Comptroller's tax.help address noting that diabetic test strips would be covered, but asking whether the exemption also reaches the lancets used in diabetic monitoring machines.

The Comptroller's answer: lancets are not exempt as over-the-counter drugs or medicines on their own. They do, however, qualify for exemption if sold under a prescription from a doctor.

What this means for you

Pharmacies and diabetic supply retailers

Diabetic test strips fall under the general OTC drugs/medicines exemption without needing a prescription (per related letters this session), but lancets specifically require a doctor's prescription to be exempt — don't treat lancets as automatically exempt the same way as test strips.

Diabetics and caregivers buying monitoring supplies

If you want your lancets to be tax-exempt, you'll need a doctor's prescription. Test strips, by contrast, don't require one.

Accountants and tax professionals

A short, targeted confirmation on lancets specifically — useful alongside related letters addressing the broader diabetic-supplies exemption list, reinforcing that lancets (like blood testing equipment/monitors) sit in the prescription-required category rather than the automatically-exempt category.

Common questions

Q: Are diabetic lancets exempt from Texas sales tax the same way test strips are?
A: No. Lancets are not automatically exempt — they require a doctor's prescription to qualify for exemption.

Q: What if I don't have a prescription for my lancets?
A: Without a prescription, lancets are not exempt as over-the-counter drugs or medicines.

Q: Can I rely on this letter for my own retail sales of lancets?
A: No. This opinion is based on the facts presented; additional or different facts may yield different results.

Citations and references

No Texas Tax Code section or administrative rule is cited by number in the original letter.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/200003152L

Original ruling text

March 30, 2000

From: Philip Knisely

To: **/**

Dear Ms. ** and **:

Thanks for using tax.help email to inquire about Texas sales tax exemptions for
over-the-counter drugs and medicines effective April 1, 2000.

Lancets are not exempt over-the-counter drugs or medicines. They do, however,
qualify for exemption if sold under a prescription from a doctor.

This opinion is based on the facts presented. Additional or different facts
may yield different results.

Please let me know if you have additional questions.

Sincerely,

Philip Knisely

On Fri, 24 Mar 2000 21:55:45 -0600 **/**
wrote:

Hi, under the new tax exemption for OTC drugs I see that also includes diabetic
test strips but does it also include the diabetic lancets used in the
monitoring machines? Thanks **