006-05-08 Ark. Code R. § 4-GR-36

Current through Register Vol. 49, No. 4, April, 2024

Rule 006.05.08-004-GR-36 - EXEMPTIONS FROM TAX - PERSONS ELIGIBLE FOR MEDICARE AND MEDICAID:

A. The gross receipts or gross proceeds derived from the sale or rental of medical equipment by medical equipment suppliers doing business in Arkansas to persons enrolled in and eligible for either Medicare or Medicaid programs as described in 42 USC § 1395 and § 1396 et seq. of the Federal Social Security Act or successor program having the same purpose, or of any other present or future United States government subsidized health care program, are exempt from tax. This exemption applies only to the gross receipts or gross proceeds received directly or indirectly through an organization administering such program in Arkansas pursuant to a contract with the United States government in accordance with the terms thereof.

Example: Seller is a medical equipment supply store and purchaser is receiving Medicare benefits. Seller charges $150.00 for the sale of a wheelchair to buyer. Seller is reimbursed $100.00 of the purchase price from the program administrator who is under contract with the United States government to administer the Medicare program. Seller will charge and collect tax only on $50.00 of the sale price for the wheelchair. (See also GR-38.2.)

B. Medical equipment includes, but is not limited to, durable medical equipment, mobility enhancing equipment, prosthetic devices, contact lenses, and corrective eyeglasses.

006.05.08 Ark. Code R. § 004-GR-36

Ark. Code Ann. § 26-52-401(20)