Mo. Code Regs. tit. 12 § 10-110.013
Current through Register Vol. 49, No. 23, December 2, 2024
Section 12 CSR 10-110.013 - Drugs and Medical EquipmentPURPOSE: Section 144.030.2(18), RSMo, provides an exemption for prescription drugs, orthopedic and prosthetic devices, numerous dental items, hearing aids, hearing aid supplies and certain sales of over-the-counter drugs. This rule explains the sales tax law as it applies to these exemptions.
(1) In general, sales of prescription drugs, orthopedic and prosthetic devices and certain qualifying health-related equipment, and certain sales of over-the-counter drugs, are exempt from Missouri sales tax.(2) Definition of Terms. (A) Orthopedic device-a rigid or semirigid leg, arm, back or neck brace and casting materials which are directly used for the purpose of supporting a weak or deformed body member or restricting or eliminating motion in a diseased or injured part of the body.(B) Over-the-counter drug-a drug product which may be purchased without a physician's prescription.(C) Prescription drug-a drug dispensed by a licensed pharmacist only upon a lawful prescription from a licensed practitioner.(D) Prosthetic device-a device that replaces all or part of the function of a permanently inoperative or malfunctioning internal body organ and is medically required.(3) Basic Application of Tax.(A) Sales of prescription drugs, insulin, medical grade oxygen, drug samples and materials used to manufacture samples, which may be dispensed by a licensed practitioner are exempt from tax. Sales of over-the-counter drugs when sold to an individual with a disability or to the individual's agent are exempt from tax. When selling over-the-counter drugs to an individual with disability, the retailer should obtain a purchaser's signed statement of disability. The retailer should retain these statements for three (3) years. The statement should include the purchaser's name, type of purchase and amount of purchase, and be signed by the purchaser or the purchaser's agent. The retailer should request a form of identification, such as driver's license, credit card, etc. to verify the identity of the purchaser. Sales of prosthetic devices as defined on January 1, 1980, by the Federal Medicare Program under Title XVIII of the Social Security Act of 1965 are exempt from tax.(B) Sales of orthopedic devices as defined by the Federal Medicare Program under Title XVIII of the Social Security Act of 1965 are exempt from tax.(C) Also exempt from sales tax are items specified in section 1862(A)(12) of the Social Security Act of 1965. Exempt items included in this class are those used in connection with the treatment, removal or replacement of teeth or structures directly supporting teeth. Dental equipment or supplies are not exempt. The exempt items include:7. Artificial dentistry and dental reconstructions, which are made, manufactured or fabricated from molds or impressions made by dentists of the mouths of their particular patients and sold to dentists for insertion in the patient's mouth as the direct support of, substitution for, or part of the patient's teeth.(D) Sales of other specific health-related equipment and accessories are exempt from sales tax. 1. These specific items are- C. Electronic Braille equipmentD. Home respiratory equipment and accessoriesE. Hospital beds and accessoriesG. Wheelchairs, manual and powered 2. If purchased by or on behalf of a person with one or more physical or mental disabilities to enable them to function more independently, the following items are also exempt:A. Electronic print enlargers and magnifiersB. Electronic alternative and augmentative communication devicesC. Items used solely to modify motor vehicles to permit the use of such motor vehicles by individuals with disabilities(4) Examples.(A) A retailer sells an over-the-counter drug to an individual claiming a disability. The sale is exempt if the retailer obtains from the purchaser or their agent a statement similar to the following: Purchases of over-the-counter drugs by individuals with disabilities are exempt from sales tax. IT IS UNLAWFUL TO FRAUDULENTLY CLAIM AN EXEMPTION. I CERTIFY THAT I HAVE A DISABILITY AND AM ENTITLED TO CLAIM THIS EXEMPTION OR I AM CLAIMING THIS EXEMPTION ON BEHALF OF A PERSON OR PERSONS WITH A DISABILITY.
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(B) Examples of exempt prosthetic devices include:1. Breast prosthetics, including surgical brassieres for postmastectomy patients3. Colostomy and other ostomy bags and the necessary equipment required for attachment4. Electronic speech aids if the patient has had a laryngectomy or his/her larynx is permanently inoperative5. Hearing aids and hearing aid supplies6. Hemodialysis equipment7. Maxillofacial devices and devices which replace all or part of the ear or nose8. Prosthetic lenses which replace the lens of an eye9. Urinary collection systems, including Foley catheters, when replacing bladder function in cases of permanent urinary incontinence10. Eyeglasses, contact lenses, bedpans and incontinent apparel are not considered prosthetic devices and are subject to sales tax(C) Examples of exempt orthopedic devices include:1. Artificial legs, arms and eyes including terminal devices such as artificial hands2. Hoods and space shoes which replace part of a foot4. Stump stockings and harnesses when they are essential to the effective use of an artificial limb6. Elastic braces, elastic stockings, arm slings, elastic wraps and garter belts, are not considered orthopedic devices and are subject to sales tax(D) Examples of exempt orthopedic and prosthetic devices used in dentistry include: 1. Restorative materials. I. Dentin enamel adhesivesK. Denture repair materialsP. Pit and fissure sealants Q. PorcelainsS. Temporary filling materials T. Zinc oxide (Eugenol) 2. Prosthetic devices and supportive materials.F. Denture repair materials3. Orthodontic devices and materials.B. Bone grafting materialsF. Gortex grafting materialsH. Muscosal grafts (natural and artificial)I. Orthodontic appliances L. Orthodontic expansion screwN. Orthodontic separators(E) Sales of other specific health-related equipment and accessories are exempt from sales tax. 1. These specific items are- C. Electronic Braille equipmentD. Hospital beds and accessoriesE. Home respiratory equipment and accessoriesG. Wheelchairs, manual and powered2. If purchased by or on behalf of a person with one (1) or more physical or mental disabilities to enable them to function more independently, the following items are also exempt:A. Electronic alternative and augmentative communication devicesB. Electronic print enlargers and magnifiersC. Items used solely to modify motor vehicles to permit the use of such motor vehicles by individuals with disabilities AUTHORITY: section 144.270, RSMo 1994.* Original rule filed Sept. 29, 1999, effective April 30, 2000. *Original authority: 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961.