Alabama – Exemption for Durable Medical Equipment, Devices, and Supplies

SALT Report 2552 – The Alabama State Legislature enacted legislation that creates a sales and use tax exemption for items used to treat illness or injury, or to replace all or part of a limb or internal body part. Qualified items must be purchased by or, on behalf of, an individual pursuant to a prescription and covered by and billed to a third-party payer. The exemption applies to sales and purchases of:

  • Durable medical equipment, including repair parts, and any disposable or single patient supplies required to properly use the equipment,
  • Medical oxygen and related equipment and supplies, and
  • Prosthetic or orthotic devices, and medical supplies, as defined and covered by the Medicare program; this includes catheters, catheter supplies, ostomy bags and supplies, specialized wound care products, and similar items that are covered by and billed to a third-party payer

This exemption is effective October 1, 2014.

For Further Information

Alabama State Legislature – Senate Bill 240, Laws 2013