Were prescribed external urinary incontinence devices exempt from Texas sales tax, and what documentation supported unlimited refills?

Plain-English summary

The Texas Comptroller said external urinary incontinence devices were exempt from sales tax when prescribed by a doctor.

If the prescription allowed unlimited refills, the seller needed only to retain that prescription to establish the continuing exemption.

The operative body did not decide catheters, ureteral stents, temporary implants, or the other devices in STAR's broader caption.

What this means for you

The exemption depended on a doctor's prescription and the seller's retained documentation. A broad product caption should not be read as extending the answer to devices absent from the body.

Common questions

Were external incontinence devices exempt? Yes, with a doctor's prescription.

What supported repeated exempt purchases? A retained prescription allowing unlimited refills.

Did the body decide catheters or ureteral stents? No.

Citations and references

• The letter cited no numbered statute or Comptroller rule.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/8610L0768D11

Original ruling text

October 31, 1986

Dear ***:

Thank you for your recent letter which is restated with response below.

I am a quadriplegic. For the past several years, I've been using the external
incontinent device (one is enclosed). Until this past year, I've not been
required to pay sales tax on them.

When I purchased a carton a year ago, the merchant informed me that only
internal devices were tax exempt. I called the local tax office and was
informed over the phone that the external devices were still tax exempt. They
sent me a xerox copy of a rather general regulation to this effect.

The merchant could not receive this, saying that he had not collected tax on
certain items in the past, only to have the state auditors tell him he owed it.
That, of course, cost him money out of his pocket.

I need an official, signed statement from someone there in authority as to the
taxability or non-taxability of external urinary incontinent devices. This
will give me and the merchant the information we need. If they are indeed
non-taxable, it will save me money, not to mention other customers being taxed
for this same item. As well, his state auditors should be satisfied.

RESPONSE: We will exempt external urinary incontinent devices if they are
prescribed by a doctor. If the prescription allows unlimited refills, the
seller will need only to retain that prescription to establish the ongoing
exemption.

This opinion is based upon the facts presented. If there are additional or
different facts, this opinion may change.

Please feel free to contact us if you have additional questions. You may write
us, call 1-800-252-5555 toll free from anywhere in Texas or telephone
512/463-4600.

Sincerely,

Al Van Allen
Tax Policy Section
Tax Administration Division