N.J. Admin. Code § 18:24-37.9

Current through Register Vol. 56, No. 21, November 4, 2024

Section 18:24-37.9 - Purchases by medical service providers

(a) Supplies are taxable when purchased for use in providing medical services for compensation and not transferred to the purchaser of the service. Examples of supplies that are not transferred to the purchaser include, but are not limited to:

1. Cotton balls;

2. Tongue depressors; and

3. Hypodermic needles and syringes.

(b) Qualified nonprofit, Federal, State, or local government owned and operated hospitals and nursing homes may purchase supplies and other tangible personal property, such as durable medical equipment and mobility enhancing equipment, which will be utilized for their own use without the payment of tax by issuing the seller a copy of the organization's Exempt Organization Certificate (Form ST-5) and paying with organizational funds. Governmental purchasers may document the exemption by issuing a valid purchase order or contract signed by an authorized officer and paying with government funds. See 54:32B-9. For example, a non-profit hospital that has applied for and received Form ST-5 from the Division may purchase a wheelchair to be utilized by patients while staying at the hospital without the payment of tax. The exempt organization is required to issue Form ST-5 to the seller and make payment with organizational funds.

(c) A nursing home, hospital, or other medical service provider may purchase tangible personal property that will be resold to a patient without the payment of tax by issuing a fully completed Resale Certificate (Form ST-3) or other approved form to the seller.

N.J. Admin. Code § 18:24-37.9

Adopted by 47 N.J.R. 729(a), effective 4/6/2015.

Amended by 48 N.J.R. 824(a), effective 5/16/2016