Ezel / Tax Rulings / TX
TX 9605L1408G01 Sales and/or Use Tax (State,Local,MTA) 1996-05-01

Are specialized therapeutic beds and mattress overlays that a company rents out exempt from Texas sales tax as hospital beds?

Short answer: Mostly yes: the Comptroller found that most of the specialized beds and pressure-relieving mattress/flotation systems the company rents out qualify for Texas's hospital bed exemption under Tax Code § 151.313, because they function as hospital beds used to prevent bed sores in patients confined to bed for long periods. However, one listed product, the UpScale Under-Patient Scale System, does not qualify for the exemption.

Apply this to your situation

This page answers the general question as of 1996. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1996
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is an official Texas Comptroller of Public Accounts letter published on the State Tax Automated Research (STAR) system. Letters on STAR can be the basis of a detrimental reliance claim only for the taxpayer to whom the letter was directly issued (see 34 Tex. Admin. Code Rules 3.1 and 3.10); documents on STAR may no longer represent current policy even if not marked superseded. Taxpayer-identifying details are redacted. This summary is informational only and is not legal or tax advice. Consult a licensed Texas tax professional about your specific situation.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page) is the authoritative source for any reliance.

Subject

Bed — Hospital — Sold To Hospital/Nursing Home (Does Not Include Operating Tables/Beds)

Plain-English summary

A company that rents out specialized beds and mattress-overlay systems in Texas asked the Comptroller whether its rental equipment was taxable. The equipment ranged from specialized beds to specialized mattresses placed on beds, all designed for patients confined to bed for long periods, with the primary purpose of preventing bed sores.

The Comptroller cited Tex. Tax Code § 151.313, which exempts the sale, lease, or rental of hospital beds, and found that most of the listed products qualified for that exemption: the DFS Homecare Advanced Dynamic Flotation System, DFS2 Superior Dynamic Flotation System, Autoexcel Dynamic Pressure Relieving System, Alpha Active Pressure Relieving Support Surface, Orthoderm Convertible II air flotation therapy system, Orthoderm Consummate Air Therapy Bed, ProAire Portable Rotation System, BioMedx Portable Air Flotation System, Bio Therapy Plus Dynamic Air Floatation System, and Orthoderm Convertible low air loss system. One product, the UpScale Under-Patient Scale System, did not qualify -- it is a scale, not a bed or pressure-relief surface, so it falls outside the hospital bed exemption.

What this means for you

Medical equipment rental/sales companies

If you rent or sell specialized therapeutic beds, mattress overlays, or air-flotation/pressure-relieving support surfaces designed for patients confined to bed, those products can qualify for Texas's hospital bed exemption under Tex. Tax Code § 151.313. Accessory equipment that isn't itself a bed or bed-surface, like a separate patient scale system, does not automatically share in that exemption just because it's sold alongside qualifying beds.

Hospitals and nursing homes purchasing or renting this equipment

Confirm with your supplier whether a specific product has been treated as an exempt hospital bed. This letter shows the exemption analysis is product-specific: the Comptroller reviewed each named product against manufacturer brochures rather than applying a blanket rule to the whole equipment line.

Accountants and tax professionals

The controlling test here is whether the product functions as a hospital bed (or a mattress/support surface used on one) for patients confined to bed for extended periods. This letter is a useful example of the Comptroller applying that exemption item-by-item across a product catalog.

Common questions

Q: Are all products a medical equipment rental company offers automatically exempt if some of its beds qualify as hospital beds?
A: No. This letter shows the Comptroller evaluated each product individually; a patient scale system in the same catalog did not qualify even though most of the specialized beds and mattress systems did.

Q: What statute exempts hospital beds in Texas?
A: Tex. Tax Code § 151.313, which exempts the sale, lease, or rental of hospital beds, as cited in this letter.

Q: Does this ruling apply to operating tables?
A: The letter's subject line notes the underlying inquiry distinguishes this equipment from operating tables/beds, but the body of the letter itself addresses only the specialized therapeutic beds and mattress systems listed, not operating tables specifically.

Citations and references

Statutes:

  • Tex. Tax Code § 151.313 (exemption for the sale, lease, or rental of hospital beds)

Source

Original ruling text

May 1, 1996

Dear ****:

Thank you for your letter dated April 24, 1996, concerning the taxability of
the products your company rents in Texas. Thank you for including brochures
on the products.

The equipment ranges from specialized beds to specialized mattresses that are
placed on the beds for individuals confined to bed for long periods of time.
The primary function is to aid in the prevention of bed sores obtained from
lengthy confinement to bed.

Texas Tax Code 151.313 exempts the sale, lease or rental of hospital beds

Products as described in the brochures that qualify for exemption included
the following:

DFS Homecare Advanced Dynamic Flotation System
DFS2 Superior Dynamic Flotation System
Autoexcel Dynamic Pressure Relieving System
Alpha Active Pressure Relieving Support Surface
Orthoderm Convertible II air flotation therapy system
Orthoderm Consummate Air Therapy Bed
ProAire Portable Rotation System
BioMedx Portable Air Flotation System
Bio Therapy Plus Dynamic Air Floatation System
Orthoderm Convertible low air loss system

The product UpScale Under-Patient Scale System does not qualify for exemption.

This opinion is based on the facts presented and current law. Different facts
although similar, may result in different answers.

If you have any questions or need more information, you may call me toll free
at 1-800-531-5441, ext. 50330. The direct line is 512/475-0330. You may also
write to Tax Policy Division, Comptroller of Public Accounts.

Sincerely,

Bettie Peterson
Tax Policy Division

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