Was a physician-prescribed book containing an at-home cardiac rehabilitation program exempt from Texas sales tax as a therapeutic device?

Plain-English summary

The book was designed to help physicians counsel patients after a heart attack, bypass surgery, or angioplasty and gave patients a rehabilitation program to follow at home.

The Comptroller nevertheless found the book taxable. A written or oral prescription from a licensed healing-arts practitioner did not make it exempt because the book did not meet Rule 3.284(a)(11)'s definition of a therapeutic appliance or device.

Common questions

Did a physician's prescription make the book exempt? No.

Did the rehabilitation purpose change the result? No.

Why was the book taxable? It was not a therapeutic appliance or device under the cited definition.

Citations and references

• 34 Tex. Admin. Code Rule 3.284(a)(11) (Drugs, Medicines, Medical Equipment and Devices)

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9002L0995E12

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, TX 78774

February 1, 1990

Dear *:

Thank you for your recent letter regarding the taxability of a
book you have recently completed.

You stated the book is designed to help physicians counsel their
patients who have suffered a heart attack, bypass surgery, or
angioplasty. You also stated the book, in essence, provides the
patient with a rehabilitation program which they can follow at
home and therefore constitutes a form of medical treatment.

Your question was, will the book be exempt from sales tax if the
physician gives a written prescription for it to the patient? The
book will not be exempt from sales tax, even when sold under a
written or oral prescription form a licensed practitioner of the
healing arts. The book does not meet the definition of a
therapeutic appliance or device, please refer to section (a)(11)
of the enclosed Rule 3.284 Drugs, Medicines, Medical Equipment and
Devices.

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

If you have any questions or need additional information, you may
call me toll free at 1-800-252-5555, extension 5-0330. The
regular number is 512/463-4600, or write me at Tax Correspondence,
Comptroller of Public Accounts.

Sincerely,
Bettie U. Peterson
Tax Correspondence Division