SALT Report 2617 – The Mississippi Department of Revenue issued guidance regarding the sales tax exemption for qualified durable medical equipment (DME) and home medical supplies (HMS) that will take effect July 1, 2013. The exemption applies to DME and HMS when they are ordered in writing or prescribed by a licensed physician for a patient’s use; and when any part of the payment is made by an insurance policy, contract, or plan.
Items that qualify for the exemption include, but are not limited to:
- Lift Chairs
- Respiratory Assist devices
- Hospital Beds
- Steering Wheel Controls
- Automobile Swivel Cushions
- Wheelchair lifts
- Bed Side Rails
- Bed Pans
- Dialysis Equipment
- Blood Glucose Monitors and other Diabetic equipment
- Diabetic Supplies
- Home oxygen equipment
- Sterile pads
Additionally, certain mobility enhancing equipment and repair and replacement parts used for qualified DME may be eligible for the exemption.
Items that do not qualify for the exemption include:
- Items for athletic, exercise, or recreational activities that are not used to assist with daily living
- Items designed for outdoor use
- Backup devices for another residence or for traveling
- Items intended for environmental control or home modification such as electronic door openers, ramps, elevators, or air cleaners
- Items used for personal comfort, hygiene, or cosmetic purposes
- Drugs and medicines
- Sales that are paid in full by the patient will not qualify for the exemption even if the patient is later reimbursed by an insurance policy, contract, or plan.
- Sales made prior to July 1, 2013, even if the customer will be billed after July 1, 2013.
Finally, the bulletin advises that proper documentation must be kept for all sales of qualified DME and HMS in order to validate the exemption.
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