Was a post-eye-surgery kit containing medical supplies, sunglasses, a video, and a leather bag taxable in Texas?

Plain-English summary

A post-eye-surgery pack contained saline wipes, nonallergenic tape, an educational VCR tape, ultraviolet-filter sunglasses, and a leather bag.

The wipes and tape were therapeutic appliances and were exempt when sold to an individual under a physician's prescription. Sunglasses dispensed under an optometrist's or ophthalmologist's direction were exempt. The VCR tape and leather bag were taxable.

The whole package followed predominant cost. If the exempt wipes, tape, and sunglasses made up the predominant cost, the package was exempt when sold under a physician's prescription. If the taxable video and bag predominated, the entire package was taxable.

The Comptroller did not decide the food supplements used in a supervised weight-loss program because product brochures and labels were needed.

What this means for you

The package was not split line by line in the ruling. Its overall treatment followed whether exempt or taxable components represented the predominant cost.

Common questions

Were prescribed saline wipes and adhesive tape exempt? Yes.

Were the sunglasses exempt? Yes, when dispensed under an optometrist's or ophthalmologist's direction.

Were the VCR tape and leather bag exempt? No.

Did the letter decide the powdered food supplements? No.

Citations and references

• Comptroller Rule 3.284(a)(11) and (c)(6) — therapeutic appliances sold under prescription

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9009L1045B12

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, TEXAS 78774

September 19, 1990

Dear *:

We received your letter questioning the taxability of a medical
pack for patients after eye surgery and food supplements sold in
powder form by a physician to a patient.

The medical pack contains:

1. sterile saline solution wipes;
2. nonallergenic adhesive tape;
3. VCR tape - educational tape regarding care after surgery (how
   to apply medication);
4. sunglasses - ultraviolet filter and aids in the prevention of
   Central Macular Edema (after surgery the eye is extremely sensi-
   tive to sunlight);
5. leather bag to hold contents.

The sterile saline solution wipes and the nonallergenic adhesive
tape are therapeutic appliances and are not taxable when sold to
individuals under the prescription of a physician. See sections
(a)(11) and (c)(6) of the enclosed Rule 3.284 relating to drugs,
medicines, and medical equipment.

All sunglasses dispensed under the direction of an optometrist
or ophthalmologist are exempt from tax.

The VCR tape and the leather bag are taxable.

The predominant cost of the entire package will determine the
taxability. If the cost of the saline wipes, the adhesive tape,
and the sunglasses is the predominant cost of the entire package,
then the package would be exempt when sold to an individual under
the prescription of a physician. If the cost of the remaining
items in the package is the predominant cost, then the entire
package is taxable.

I need more information about the supervised weight loss program
(Medifast) to determine the taxability of the food supplements.
Please send a brochure or any printed information you have about
the product including labels from the can.

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

If you have any questions you may call or write Tax Correspon-
dence. You may call toll free 1- 800- 252-5555, or our regular
number is 512/463-4600. My extension is 3-4658.

Sincerely,
Sherry Buckley
Tax Correspondence