Were Foran, Ethrane, Fluothane, oxygen, and other gases administered to patients under a physician's direction exempt from Texas sales tax?

Plain-English summary

Foran, Ethrane, and Fluothane used in surgical procedures and administered under a physician's direction qualified as drugs and medicines.

Oxygen and other gases administered to patients also qualified. When dispensed on the prescription of a licensed practitioner of the healing arts, the gases were exempt, and the purchaser could give suppliers a properly completed exemption certificate.

Common questions

Were the named anesthesia gases exempt? Yes.

Did oxygen and other patient gases qualify too? Yes.

What documentation did the purchaser use? A valid exemption certificate based on the prescribed use.

Citations and references

• 34 Tex. Admin. Code Rule 3.284

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/8912L0970G09

Original ruling text

December 7, 1989

Dear *****:

I have received your inquiry regarding the taxability of medical gasses.

You state that you received conflicting information from our personnel
regarding the taxability of foran, ethrane, fluothane, and other medical
gasses. You indicate that the gasses are used in your surgical procedures. In
our telephone conversation of December 6, 1989, you further indicated that the
foran, ethrane, and fluothane are anesthesia gasses which are administered to
patients under the direction of a physician.

Foran, ethrane, fluothane, and other anesthesia gasses administered to patients
qualify as drugs and medicines for sales tax purposes. Furthermore, oxygen and
other gasses administered to patients will qualify as drugs and medicines.
Since the gasses are dispensed on the prescription of a license practitioner of
the healing arts, the gasses are exempt from sales tax as indicated in the
enclosed Comptroller's Rule 3.284 (Drugs, Medicines, Medical Equipment and
Devices). Therefore, you should issue a valid, properly completed exemption
certificate to your suppliers in lieu of tax on these gasses.

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

If you have any questions, please contact Tax Correspondence. You may call
toll free 1-800-252-5555, or our regular number is 512/463-4600. My extension
is 3-4662.

Sincerely,

Bob Jeffcoat
Tax Correspondence