Ezel / Tax Rulings / TX
TX 9005L1022G01 Sales and/or Use Tax (State,Local,MTA) 1990-05-23

Was a prescribed compressor-nebulizer exempt from Texas sales tax when sold or rented to an individual, hospital, nursing home, or home health agency?

Short answer: It was exempt as a therapeutic device when sold, leased, or rented to an individual under a licensed healing-arts practitioner's prescription. The device and related supplies were taxable to hospitals, nursing homes, home health agencies, and other institutions unless the institution independently qualified for exemption under Tax Code section 151.310(a)(1) or (2).

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This page answers the general question as of 1990. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1990
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is an official Texas Comptroller of Public Accounts letter published on the State Tax Automated Research (STAR) system. Letters on STAR can be the basis of a detrimental reliance claim only for the taxpayer to whom the letter was directly issued (see 34 Tex. Admin. Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded. Taxpayer-identifying details are redacted. This summary is informational only and is not legal or tax advice. Consult a licensed Texas tax professional about your specific situation.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page) is the authoritative source for any reliance.

Plain-English summary

The compressor-nebulizer qualified as a therapeutic appliance or device. It was exempt when sold, leased, or rented to an individual under a prescription from a licensed practitioner of the healing arts.

The device and related supplies were taxable when bought by a hospital, nursing home, home health agency, or other institution unless that institution independently qualified for exemption under Tax Code section 151.310(a)(1) or (2).

Common questions

Was the prescribed nebulizer exempt for an individual? Yes.

Was an institutional purchase automatically exempt? No.

Did the institutional rule include home health agencies? Yes.

Citations and references

  • Tex. Tax Code § 151.310(a)(1) and (2).
  • Comptroller Rule 3.284(a)(11) and (c)(6).

Source

Original ruling text

May 23, 1990

Dear **:

Thank you for your recent letter regarding the taxability of a
doctor prescribed ** Pulmo-aide Compressor/Nebulizer.

The device is exempt as a therapeutic appliance or device when
sold, leased or rented to individuals under a prescription of
a licensed practitioner of the healing arts. However, the
device and related supplies are taxable when purchased by
hospitals, nursing homes, or other institutions which would include
home health agencies unless the hospital, nursing home or other
institution qualifies for exemption under Texas Tax code 151.310
(a)(1) or(a)(2). See rule 3.284 (a)(11) and (c)(6).

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 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

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