Is the Kendall A-V Impulse System, a sequential compression device (SCD) that promotes blood circulation, exempt from Texas sales and use tax?

Plain-English summary

A taxpayer wrote to the Comptroller's office asking how Texas sales and use tax applies to the Kendall A-V Impulse System, a sequential compression device (SCD), and provided a brochure describing the product. The Comptroller explained that the Kendall A-V Impulse System provides assisted circulation to ambulatory patients — it works by creating pressure that forces blood to circulate through the veins of the limbs.

Based on that function, the Comptroller ruled that the device qualifies for exemption from sales and use tax as a prosthetic device, citing 34 Tex. Admin. Code Rule 3.284(a)(10)(B), the rule governing drugs, medicines, medical equipment, and devices. The ruling is short and fact-specific, and the Comptroller noted that different facts, even if similar, could lead to a different result.

What this means for you

Medical equipment sellers and distributors

If you sell sequential compression devices like the Kendall A-V Impulse System — equipment that mechanically assists blood circulation in the limbs of ambulatory patients — this ruling supports treating such sales as exempt from Texas sales and use tax as prosthetic devices under Rule 3.284(a)(10)(B). Because the Comptroller's holding was expressly tied to the facts and brochure presented for this specific product, sellers of similar but not identical devices should confirm exemption treatment for their particular equipment rather than assuming automatic coverage.

Accountants and tax professionals

When advising healthcare providers, durable medical equipment suppliers, or patients on the tax treatment of circulation-assist devices, this letter is a useful data point showing the Comptroller's classification of SCDs as prosthetic devices under the medical equipment exemption rule. Because the letter is fact-bound (based on the brochure the taxpayer submitted), it's worth confirming that a given device's design and function are comparable to those described here before relying on this letter for a different product.

Patients and healthcare purchasers

If a compression device like this is part of your medical treatment, this ruling indicates that Texas does not intend to tax it as ordinary equipment — it is treated as a prosthetic device, which is generally exempt from sales tax.

Common questions

Q: What is the Kendall A-V Impulse System, and how did the Comptroller describe it?
A: It is a sequential compression device (SCD) that the Comptroller described as providing assisted circulation to ambulatory patients by creating pressure to force blood to circulate through the veins of the limbs.

Q: Why is the device exempt from Texas sales and use tax?
A: The Comptroller classified it as a prosthetic device under 34 Tex. Admin. Code Rule 3.284(a)(10)(B), the rule covering drugs, medicines, medical equipment, and devices, which exempts qualifying prosthetic devices from sales and use tax.

Q: Does this ruling apply automatically to every compression device on the market?
A: Not necessarily. The Comptroller's letter is based on the specific facts and brochure the taxpayer submitted for the Kendall A-V Impulse System, and the letter itself cautions that different facts, though similar, might lead to a different answer. Sellers of other compression devices should confirm their product's design and function align with what was described here.

Q: Is there anything unusual about this letter's numbering?
A: Yes — the letter notes a previous accession number of 9404321L, indicating it was renumbered or reissued under the current accession number 9404L1299F01.

Citations and references

• 34 Tex. Admin. Code Rule 3.284(a)(10)(B) (Drugs, Medicines, Medical Equipment, and Devices; prosthetic device exemption)

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9404L1299F01

Original ruling text

April 29, 1994

Dear *:

This is in response to your letter dated April 12, 1994,
regarding sales and use tax as it applies to the Kendall A-V
Impulse System. Thank you for providing the brochure.

The Kendall A-V Impulse System provides assisted circulation
to ambulatory patients and qualifies for exemption as a
prosthetic device. See Rule 3.284(a)(10)(B), Drugs,
Medicines, Medical Equipment, and Devices.

This opinion is based on the facts presented. Different
facts, though similar, might lead to different answers. If
you have any questions or need more information, please
write or call me toll free at 1-800-531-5441, extension
5-0330, or 512-475-0330.

Sincerely,

Bettie Peterson
Tax Administration Division

NOTE: Previous Accession Number 9404321L