SALT Report 1970 – The Tennessee Department of Revenue ruled that a Taxpayer’s two surgical products are exempt from Tennessee sales and use tax as prosthetic devices. The first product is used to promote bone tissue regeneration and the second product is a moldable bone void filler used to remodel natural bone.
To qualify as a prosthetic device under Tennessee Code § 67-6-314(1), the products must:
- Be for human use,
- Constitute a replacement, corrective, or supportive device,
- Be worn in or on the body, and
- Be used to artificially replace a missing portion of the body, prevent or correct physical deformity or malfunction, or support a weak or deformed portion of the body
Because the Taxpayer’s products met the requirements of the exemption sales to hospitals and surgery centers are exempt from Tennessee sales and use tax.
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