Ezel / Tax Rulings / TX
TX 9006L1024B01 Sales and/or Use Tax (State,Local,MTA) 1990-06-01

Were a continuous passive motion machine and the Hot Ice Dual Function Equipment exempt therapeutic devices in Texas?

Short answer: Yes, subject to the buyer and prescription conditions. Both machines qualified as therapeutic devices. They and related supplies were exempt when sold, rented, or leased to an individual under a licensed healing-arts practitioner's prescription, but taxable when sold to a private for-profit hospital.

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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 Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded.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 Comptroller classified both the continuous passive motion machine and the Hot Ice Dual Function Equipment as therapeutic devices.

The devices and related supplies were exempt when sold, leased, or rented to an individual under a prescription from a licensed practitioner of the healing arts. They were taxable when sold to a private, for-profit hospital.

The May 24 letter initially gave only a tentative view of the Hot Ice machine because the Comptroller lacked full product information. After receiving additional information, the June 1 letter gave the definite therapeutic-device classification.

Common questions

Did both machines qualify as therapeutic devices? Yes.

Was every sale or rental exempt? No. The exemption described in the letters required an individual buyer or user and a qualifying prescription.

Was a sale to a private for-profit hospital exempt? No.

Citations and references

  • Comptroller Rule 3.284(c)(6).

Source

Original ruling text

June 1, 1990

Dear ****:

Thank you for the additional information that you sent concerning
the "Hot Ice Dual Function Equipment."

This equipment qualifies as a therapeutic device. As stated in my
letter dated May 24, 1990, therapeutic devices and related
supplies are exempt when sold, rented or leased to an individual
under a prescription of a licensed practitioner of the healing arts.
These devices are taxable when sold to a private, for-profit hospital.

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

Please feel free to contact me if you have any additional questions.
You may write me, call toll free 1-800-252-5555 (ext. 3-4685) from
anywhere in the United States or phone 512/463-4685.

Sincerely,

Julie Pesl
Tax Correspondence

May 24, 1990

Dear *****:

Thank you for your letter dated May 17, 1990 concerning the taxability
of a continuous passive motion machine and a hot ice machine.

The continuous passive motion machine (CPM) is a therapeutic device.
Therapeutic devices and related supplies specifically designed for
these devices are exempt when sold, leased or rented to an individual
under a prescription of a licensed practitioner of the healing
arts. These devices are taxable when sold to a private, for-profit
hospital. Please see section (c)(6) of the enclosed Rule 3.284 on
medical exemptions.

We do not have any previous information on devices called "hot ice
machines". Based on your description, it appears that it would qualify
as a therapeutic device. If you need a definite taxability ruling,
however, you will need to provide a brochure or some other complete
description of the device and its uses.

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

Please feel free to contact me if you have any additional questions.
You may write me, call toll free 1-800-252-5555 (ext. 3-4685) from
anywhere in the United States or phone 512/463-4685.

Sincerely,

Julie Pesl
Tax Correspondence

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