Was an air-purifying system sold to an allergy patient exempt from Texas sales tax when prescribed?

Plain-English summary

The requester described an air-purifying system used by patients with allergies that could be bought with or without a doctor's prescription. The Comptroller classified an air purifier as a therapeutic device.

The letter said sales tax was not due on the sale, lease, or rental of therapeutic appliances and devices, or supplies specifically designed for them, when provided to an individual under a licensed healing-arts practitioner's prescription. On the stated facts, the system was exempt if sold under a written prescription from a licensed practitioner.

What this means for you

The exemption in this letter depended on the transaction being supported by a written prescription. The product's therapeutic use by itself did not establish that every sale was exempt.

Common questions

Was the air purifier a therapeutic device? Yes. Was every sale automatically exempt? No; the letter tied the exemption to a written prescription from a licensed practitioner. Did the ruling also cover leases and rentals? Its explanation expressly included the sale, lease, or rental of qualifying therapeutic devices.

Citations and references

• The letter states the therapeutic-device prescription rule but does not identify a numbered statute or administrative rule.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9201L1151D04

Original ruling text

January 9, 1992

Dear ****:

Thank you for your letter and phone call regarding the taxability
of the Rainbow air purifying system when prescribed to the customer.

You state that the Rainbow is an air purifying system used for
patients with allergies, and that the Rainbow may be purchased
with or without a doctor's prescription.

An air purifier is considered a therapeutic device. Sales tax is
not due on the sale, lease or rental of therapeutic appliances,
devices and related supplies specifically designed for those
products when sold, leased or rented to individuals under a
prescription of a licensed practitioner of the healing arts.
Therefore, the Rainbow air purifying system would be exempt from
tax if sold under a written prescription of a licensed practitioner.

This opinion is based on the facts presented. If there are additional
or different facts, the opinion could change.

If you have any questions, please don't hesitate to write the Tax
Administration Division or call one of our tax specialists toll
free at 1-800-252-5555.

Sincerely,

Joan Hale
Tax Administration Division