Was a Cunningham clamp used to control incontinence exempt from Texas sales tax?

Plain-English summary

A medical-products seller asked for broad taxability lists. The Comptroller said complete, current public lists were not available because they required continual revision, but answered the submitted Cunningham-clamp example.

A Cunningham clamp used to control incontinence was exempt when surgically implanted. When used externally, it qualified for exemption only if sold to an individual under a prescription from a licensed practitioner of the healing arts.

What this means for you

The same medical device received different treatment depending on implantation or, for external use, patient-specific prescription documentation.

Common questions

Was a surgically implanted clamp exempt? Yes.

Was an external clamp automatically exempt? No.

What made the external clamp qualify? Sale to an individual under a licensed practitioner's prescription.

Citations and references

• 34 Tex. Admin. Code Rule 3.284(a)(3), (a)(11), (c)(2), and (c)(6) — medical-item provisions identified by the letter

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9104L1105C11

Original ruling text

April 29, 1991

Dear ****:

Thank you for your letter requesting "all relevant listings of
products sold by medical equipment dealers, pharmacies, hospitals
and medical suppliers with your judgements of whether they are
taxable at all times, etc."

Unfortunately, we do not have complete and up-to-date lists such
as you requested available for mailing to the public. Such lists
need to be revised continuously.

The example that you submitted is a page from the sales tax
procedure manual written for Comptroller's auditors. I have
enclosed another page from that manual that gives instructions for
ordering copies of the manual.

Cunningham clamps used to control incontinence are exempt if
surgically implanted in a patient. If the clamp is used exter-
nally, it will qualify for exemption only when sold to an
individual under the prescription of a licensed practitioner of
the healing arts. Please review sections (a) (3) and (11) and
sections (c)(2) and (6) of the enclosed Rule 3.284 on medical items.

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 1-800-2525-555 from
anywhere in the United States or phone 512/463-4600.

Sincerely,

Julie Pesl
Tax Administration Division