Are batteries for a blood pressure monitoring device exempt from Texas sales tax?

Subject

Blood Pressure Monitoring Device/Machine — Batteries

Plain-English summary

The Comptroller responded to a written request asking whether batteries used in a blood pressure monitoring device are taxable in Texas.

The ruling explains that a blood pressure monitoring device is classified as a therapeutic device. Under Texas Tax Code § 151.313(a)(5), a therapeutic appliance or device -- and any related supplies specifically designed for it -- is exempt from sales tax if it is dispensed or prescribed by a licensed practitioner of the healing arts, and is purchased and used by the individual for whom it was dispensed or prescribed.

Applying that rule, the Comptroller held that batteries for a blood pressure monitoring device may be purchased tax exempt, but only when the device itself was purchased exempt with a doctor's prescription. There's also a sourcing requirement: related supplies for a therapeutic device must be bought from the same store where the original prescription is on file, unless the buyer gets a new prescription.

On the flip side, a blood pressure monitoring device (or any therapeutic device) purchased without a doctor's prescription is subject to tax.

What this means for you

Patients and consumers buying monitoring devices or batteries

If you bought your blood pressure monitor with a doctor's prescription and the purchase was tax exempt, replacement batteries for that same device can also be bought exempt -- but generally only from the same store that has your prescription on file. If you go to a different store, you may need to provide a new prescription there to keep the exemption.

Retailers and pharmacies selling monitoring devices and supplies

When selling therapeutic devices like blood pressure monitors, whether the sale is taxable depends on whether the customer has a doctor's prescription. No prescription means the sale (device or batteries) is taxable. Retailers relying on this exemption for battery sales should keep the original prescription on file, since that's what ties the exempt battery purchase back to the exempt device purchase.

Accountants and tax professionals

This is a narrow application of the therapeutic-appliance exemption in Tex. Tax Code § 151.313(a)(5) to "related supplies specifically designed for" an exempt device -- here, batteries. The letter emphasizes two conditions: (1) the device itself must have been purchased exempt under a prescription, and (2) the supplies must come from the store holding that prescription, absent a new prescription.

Common questions

Q: Are batteries for a blood pressure monitor always tax exempt in Texas?
A: No. They're exempt only if the blood pressure monitoring device itself was purchased exempt with a doctor's prescription.

Q: Do I need to buy the batteries from the same store where I bought the device?
A: According to this letter, yes -- related supplies for a therapeutic device must be purchased from the same store where the original prescription is on file, unless a new prescription is obtained.

Q: What happens if I buy a blood pressure monitoring device without a prescription?
A: It's subject to tax. The letter states that a blood pressure monitoring device (or any therapeutic device) is taxable without a doctor's prescription.

Q: What statute does this ruling rely on?
A: Texas Tax Code § 151.313(a)(5), which exempts a therapeutic appliance, device, and related supplies specifically designed for it, when dispensed or prescribed by a licensed practitioner of the healing arts and purchased/used by the person for whom it was prescribed.

Citations and references

Statutes:

• Tex. Tax Code § 151.313(a)(5) (therapeutic appliance and 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/9607L1429A09

Original ruling text

July 18, 1996

ATTENTION: *
FAX *

Dear ****:

This is in response to your request for a written opinion regarding the
taxability of batteries used in a blood pressure monitoring device.

A blood pressure monitoring device is classified as a therapeutic device.

Texas Tax Code 151.313 (a)(5) states in part: A
therapeutic appliance, device, and any related supplies specifically designed
for those products, if dispensed or prescribed by a licensed practitioner of
the healing arts, when those items are purchased and used by an individual for
whom the items listed in this subdivision were dispensed or prescribed.

Therefore, batteries for a blood pressure monitoring
device may be purchased tax exempt when the blood pressure monitoring device
itself was purchased exempt with a doctor's prescription. All related supplies
for a therapeutic device must be purchased from the same store where the
original prescription is on file unless a new prescription is obtained.

A blood pressure monitoring device (or any therapeutic
device) is subject to tax without a doctor's prescription.

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

Please call me if you have any questions or need more
information. Our toll free number is 1-800-531-5441, and my extension is
5-0330. 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

NOTE: Previous Accession Number 9607532L