Kentucky – Medical Device Excise Tax Guidance

SALT Report 2557 – The Kentucky Department of Revenue issued guidance regarding the new medical device excise tax that went into effect on January 1, 2013. The MDET is a part of the Affordable Health Care Act, and imposes a 2.3% excise tax on manufacturers and importers based on the sales price of certain medical devices.

Manufacturers and importers may pass this tax on to their customers. However, if this charge appears as a line item in a retail transaction, the charge will also be subject to the 6% Kentucky sales and use tax, if the medical device is taxable in Kentucky.

The medical device excise tax does not apply to sales of eyeglasses, contact lenses, hearing aids and other devices that are typically purchased by the general public at retail for their individual use.

For Further Information

Kentucky Department of Revenue – Kentucky Sales Tax Facts