SALT Report 2931 – The Minnesota Department of Revenue updated a fact sheet that discusses the application of sales and use tax to durable medical equipment. Revisions to the fact sheet reflect that the exemption for durable medical equipment paid for, or reimbursed by, Medicare or Medicaid now applies to equipment that is not for home use, effective July 1, 2013.
The exemption also applies to purchases by private insurance companies that are administered by Medicare, such as the Medicare Advantage plan. Prior to July 1, 2013 these purchases were taxable unless they were for home use or qualified for another exemption.
For purposes of the exemption, “durable medical equipment” is defined as equipment, including repair and replacement parts, but not mobility enhancing equipment, that:
- Can withstand repeated use, and
- Is primarily and customarily used to serve a medical purpose, and
- Is generally not useful to a person in the absence of illness or injury, and
- Is not worn in or on the body
Because durable medical equipment is such a broad category the Fact Sheet provides examples of items that do, and do not, qualify as durable medical equipment. Also, the Fact Sheet discusses what is considered home use and non-home use and how the exemption applies to kidney dialysis equipment, repair and replacement parts for durable medical equipment, and prosthetic devices.
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