Georgia – SST Medical Regulation Amended

SALT Report 1870 – The Georgia Department of Revenue recently amended Rule 560-12-2-.30 Drugs, Durable Medical Equipment, Prosthetic Devices, and Other Medical Items.  In addition to the sales and use tax exemptions that were previously reported in SALT Report 1867, the Department has also amended certain definitions to conform to the Streamlined Sales and Use Tax Agreement.

Drugs

The definition of “drugs” is now defined as “a compound, substance, or preparation, and any component of a compound, substance, or preparation, other than food and food ingredients, dietary supplements, or alcoholic beverages” that are:

  • Recognized in the official U.S. Pharmacopoeia or official National Formulary, or a supplement to them,
  • Intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease, or
  • Intended to affect the structure or any function of the body

The definition of “over-the-counter drug” now states that over-the-counter drugs are anything labeled as such and should include a “drug facts” panel or a statement of the “active ingredients” with a list of the ingredients contained in the compound, substance, or preparation.

Medical Equipment

The definition of “durable medical equipment” has been amended to reflect that the definition:

  • Includes repair and replacement parts,
  • Specifies that the equipment is not worn in or on the body,
  • Is not considered “mobility enhancing equipment” and
  • No longer states that the equipment must be appropriate for use in the home

The term “mobility enhancing equipment” is defined as equipment and repair or replacement parts that:

  • Are primarily and customarily used to provide or increase the ability to move from one place to another and is appropriate for use in a home or motor vehicle, and
  • Are generally not used by persons with normal mobility

The definition of “prosthetic device” now includes “repair and replacement parts.” Also, the definition no longer states that the device must be prescribed by a physician or other licensed practitioner of the healing arts.

For Further Information:

Georgia Department of Revenue – SST Definitions for Reg. §560-12-2-.30