Iowa Admin. Code r. 701-20.9

Current through Register Vol. 47, No. 10, November 13, 2024

Rule 701-20.9 - Prosthetic, orthotic and orthopedic devices

(1)Prosthetic devices. Sales or rental of prosthetic devices shall be exempt from sales tax. This rule is applicable to sales or rental of prosthetic devices made on or after April 1, 1988.

(2)Orthotic and orthopedic devices. Sales or rental of orthotic and orthopedic devices prescribed for human use which meet the provisions of subrules 20.9(3) and 20.9(4) shall be exempt from sales tax. This rule is applicable to sales or rental of orthotic and orthopedic devices made on or after April 1, 1988.

(3)Definitions.

a."Prosthetic device " means a piece of special equipment designed to be a replacement or artificial substitute for an absent or missing part of the human body and intended to be dispensed with or without a prescription to an ultimate user See subrule 20.7(1), paragraph"b," for a definition and examples of the term "ultimate user" The term "prosthetic device" includes ostomy, urological, and tracheostomy devices and supplies.

The following is a nonexclusive list of prosthetic devices:

	Artificial arteries	Drainage bags	Prescription eyeglasses
	Artificial breasts	Hearing aids	Stoma bags
	Artificial ears	Ileostomy devices	Tracheal suction catheters
	Artificial eyes	Intraocular lenses	Tracheostomy care and
	Artificial heart valves	Karaya paste	cleaning starter kits
	Artificial implants	Karaya seals	Tracheostomy cleaning
	Artificial larynx	Organ implants	brushes
	Artificial limbs	Ostomy belts	Tracheostomy tubes
	Artificial noses	Ostomy clamps	Urinary catheters
	Artificial teeth	Ostomy cleaners	Urinary drainage bags
	Cardiac pacemakers	and deodorizers	Urinary irrigation tubing
	Contact lenses	Ostomy pouch	Urinary pouches
	Cosmetic gloves	Ostomy stoma caps and paste
	Dental bridges and implants	Penile implants

b."Orthotic device " means a piece of special equipment designed to straighten a deformed or distorted part of the human body, such as corrective shoes or braces. An orthotic device is an orthopedic device.

c."Orthopedic device " means a piece of special equipment designed to correct deformities or to preserve and restore the function of the human skeletal system, its articulations and associated structures. A hot tub or spa is not an orthopedic device.

The following is a nonexclusive list of orthopedic devices:

	Abdominal belts	Clavicle splints	Nerve stimulators
	Alternating pressure mattresses	Corrective braces	Orthopedic implants
	Alternating pressure pads	Corrective shoes	Orthopedic shoes
	Anti-embolism stockings	Crutch cushions	Patient lifts
	Arch supports	Crutch handgrips	Plaster (surgical)
	Arm slings	Crutch tips	Rib belts
	Artificial sheepskin	Crutches	Rupture belts
	Bone cement	Decubitus prevention devices	Sacroiliac supports
	Bone nails	Dorsolumbar belts	Sacrolumbar belts
	Bone pins	Dorsolumbar supports	Sacrolumbar supports
	Bone plates	Elastic bandages	Shoulder immobilizers
	Bone screws	Elastic supports	Space shoes
	Bone wax	Exercise devices	Splints
	Braces	Head halters	Traction equipment
	Canes	Hernia belts	Transcutaneous electrical nerve stimulators (tens unit)
	Casts	Iliac belts	Trapezes
	Cast heels	Invalid rings	Trusses
	Cervical braces	Knee immobilizers	Walkers
	Cervical collars	Lumbosacral supports	Wheelchairs
	Cervical pillows	Muscle stimulators

d."Related devices. " Sales or rental of devices which are used exclusively in conjunction with prosthetic, orthotic, or orthopedic devices shall be exempt from tax.Daw Industries, Inc. v. United States, 714 F.2d 1140 (Fed. Cir 1983).

e. "Medical equipment and supplies." The scope of the term medical equipment and supplies is broader than the terms prescription drugs or medical devices. While all exempt prescription drugs are medical supplies and all exempt medical devices are medical equipment, not all medical equipment and supplies are exempt medical devices or prescription drugs. The following is a nonexclusive list of items which are medical equipment or supplies, but are not prescription drugs or medical devices exempt from tax under subrules 20.7(1), 20.9(1), 20.9(2), and rule 20.8(422,423). Sales of the below-listed items would generally be taxable. However, for the period between July 1, 1992, and June 30, 1993, sales of the listed items would be exempt from tax if covered by Title XVIII or XIX of the federal Social Security Act. See rule 20.10(422,423).

	Adhesive bandages	*Drug infusion devices (other	*Nebulizers
	*Anesthesia trays	than hypodermic syringes)	*Needles
	Aneurysm clips	Dry aid kits for ears	(hypodermic)
	Arterial bloodsets	EKG paper	Overbed tables
	Aspirators	Earmolds	Page turning devices
	Athletic supporters	Electrodes (other than tens units)	Pap smear kits
	Atomizers	Emesis basins	Paraffin baths
	Autolit	Enema units	Physicians instruments
	Back cushions	First-aid kits	Pigskin
	Bathing aids	*Fistula sets	Plasma extractors
	Bathing caps	Foam slant pillows	Plasmapheresis units
	Bedpans	Gauze bandages	Plastic heat sealers
	Bedside rails Bedside tables	Gauze packings Gavage containers	Prescribed device repair kits and batteries
	Bedside trays	Geriatric chairs	Respirators
	Bedwetting prevention devices	Grooming aids	Resuscitators
	Belt vibrators	Hand sealers	Sauna baths
	*Biopsy needles	Hearing aid carriers	Security pouches
	*Biopsy trays	Hearing aid repair kits	Servipak dialysis supplies
	*Blood administering sets	Heart stimulators	Shelf trays
	Blood cell washing equipment	Heat lamps	Shower chairs
	Blood pack holders	Heat pads	Side rails
	Blood pack trays	*Hemodialysis devices	Sitz bath kit
	Blood pack units	Hemolators	* Small-vein infusion kits
	Blood pressure meters	Hospital beds	Specimen containers
	Blood processing supplies	Hot water bottles	* Spinal puncture trays
	Blood tubing	Ice bags	Sponges (surgical)
	Blood warmers	Ident-a-bands	Stairway elevators Staples
	Breast pumps	Incontinent garments	Steri-peel
	Breathing machines	Incubators	Stools
	*Cannula systems	Infrared lamps	* Stopcocks
	Cardiac electrodes	Inhalators	(intravenous)
	Cardiopulmonary equipment	*Insulin infusion devices	Suction equipment
	*Catheter trays	Iron lungs	Sunlamps
	Chair lifts	Irrigation apparatus	Surgical bandages
	Clamps	*Irrigation solutions	Surgical equipment
	Clip-on ash trays	*IV administering sets	Suspensories
	Commode chairs	IV connectors	Sutures
	Connectors	*IV solutions	Thermometers
	Contact lens cases	*IV tubing	Toilet aids
	Contact lens solution	*Kidney dialysis machines	Tourniquets
	Convoluted pads	Laminar flow equipment	Transfer boards
	Corrective pessaries	Latex gloves	* Transfusion sets
	Cotton balls	Leukopheresis pumps	Tube sealers
	Diagnostic kits	Lymphedema pumps	Underpads
	Dialysis chairs	Manometer trays	Urinals
	Dialysis supplies	Massagers	Vacutainers
	*Dialyzers	Maternity belts	Vacuum units
	Dietetic scales	Medigrade tubing	Vaporizers
	Disposable diapers	Modulung oxygenators	* Venous blood sets
	Disposable gloves	Moist heat pads	Vibrators
	Disposable underpads	*Myelogram trays	Whirlpools
	Donor chairs	Myringotomy tubes	X-ray film
	Dressings

*Sales of these medical devices are exempt as of July 1, 1993.

(4)"Prescribed" shall mean a written prescription or an oral prescription, later reduced to writing, issued by:

a. Persons licensed by the state board of medical examiners to practice medicine or surgery in Iowa.

b. Persons licensed by the state board of medical examiners to practice osteopathic medicine or surgery in Iowa.

c. Persons licensed by the state board of podiatry to engage in the practice of podiatry in Iowa.

d. Persons licensed by the state board of dentistry to practice dentistry in Iowa.

e. Persons licensed prior to May 10, 1963, to practice osteopathy in Iowa.

f. Persons licensed by the optometry examiners as therapeutically certified optometrists.

g. Persons licensed by the board of chiropractic examiners to practice chiropractic in Iowa when dispensing in accordance with Iowa Code chapter 151.

h. Any other person authorized under Iowa law to dispense prescription drugs or medical devices requiring a prescription.

i. Any person licensed in another state in a health field in which, under Iowa law, licensees in this state may legally prescribe drugs.

(5)Power devices. Sales or rental of power devices especially designed to operate prosthetic, orthotic or orthopedic devices shall be exempt from tax. This exemption does not include batteries which can be used to operate a number of devices.

This rule is intended to implement Iowa Code sections 422.45(15) and 423.4(4).

Iowa Admin. Code r. 701-20.9