Which veterinary drugs, devices, and animal feeds could be purchased tax-free under the Texas letter?

Plain-English summary

The letter allowed veterinarians to buy drugs and medicines tax-free when sold or dispensed for animals under an oral or written prescription. It defined those products as substances applied internally or externally to alleviate pain or cure or prevent animal sickness, disease, or suffering.

Hypodermic needles and syringes were also exempt. Prescription Diet and Science Diet dog and cat feed were exempt when sold or dispensed under a veterinarian's prescription. Hay, corn, oats, and other feed normally consumed by farm and ranch animals or wildlife were exempt as agricultural feed.

Other listed items were taxable unless sold to the veterinarian for resale. The letter also warned that orthopedic appliances and prosthetic devices were exempt only when used to treat humans.

What this means for you

Veterinary exemption treatment depended on the product, its use, and sometimes the purchaser. A prescription could exempt qualifying animal drugs and specified diet feed, but it did not create a blanket exemption for all veterinary supplies.

Common questions

Were prescribed animal medicines exempt? Yes, under the described oral or written prescription rules.

Were needles and syringes exempt? Yes.

Was ordinary pet food exempt? The letter specifically exempted Prescription Diet and Science Diet when prescribed; it did not exempt every pet food.

Were animal orthopedic appliances exempt? No. The letter said that exemption applied only to human treatment.

Citations and references

• 34 Tex. Admin. Code Rule 3.284(a)(4) — animal drugs and medicines
• 34 Tex. Admin. Code Rule 3.296(2) — agricultural feed exemptions

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9104L1099G01

Original ruling text

April 16, 1991

Dear **:

Thank you for your letter concerning sales of veterinary products and
supplies to licensed veterinarians. The information given in your "tip
sheet" is not entirely correct. Orthopedic appliances and prosthetic
devices are exempt only when used to treat humans. Also, this is the
State Comptroller's office, not the State Controller. I did not complete
the product list that you submitted because some of the items are not
clear or too broad or the taxability depends on the purchaser or the use
or both.

The following items may be purchased tax free by a veterinarian:

1. Drugs and medicines to be sold or dispensed for animals under an oral
   or written prescription of a licensed veterinarian. The sales tax law
   defines drugs and medicines as substances applied either internally or
   externally to animals for the alleviation of pain or for the cure or
   prevention of sickness, disease or suffering. See section (a)(4) of
   Rule 3.284 on medical exemptions.

2. Hypodermic needles and syringes.

3. Feed such as Prescription Diet and Science Diet for dogs and cats is
   exempt when sold or dispensed under a veterinarian's prescription. Hay,
   corn, oats, and other types of feed normally consumed by farm and ranch
   animals, and wildlife are exempt. See section (2) of Rule 3.296 on
   agricultural exemptions.

The other items on your list are taxable unless sold to a veterinarian
for resale to his customers.

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 from anywhere in the
United States or phone 512/463-4600.

Sincerely,

Julie Pesl
Tax Administration Division