Texas – New Definitions

SALT Report 2982 – In the latest edition of Tax Policy News, the Texas Comptroller discusses recent changes to state tax laws that created or amended the definitions of the following items.

Intravenous (IV) Systems

House Bill 3169 amends Tax Code Section 151.313 to provide a definition for intravenous (IV) systems for sales and use tax purposes.  A product is an IV system if the product is designed or intended to be used to administer fluids, electrolytes, blood and blood products, or drugs to patients or to withdraw blood or fluids from patients, regardless of whether the product is designed or intended to be inserted subcutaneously into any part of the body.

This provision was effective Sept. 1, 2013.

Hospital Beds

House Bill 3169 amends Tax Code Section 151.313 and defines a hospital bed as a bed that is specially designed for the comfort and well-being of a patient and the convenience of healthcare workers.  A hospital bed may include special features, such as wheels, adjustable height, adjustable side rails, and electronic buttons to operate both the bed and other devices.

The definition hospital bed also includes the following items:

  • A mattress for the bed,
  • Any devices built into the bed or designed for use with the bed,
  • Infant warmers,
  • Incubators,
  • Other beds for neonatal and pediatric patients, and
  • Beds specifically designed and marketed for use in the rest, recuperation and treatment of obese patients, obstetric patients and burn patients

However, the definition does not include bed linens, stretchers, gurneys, delivery tables or detached accessories such as over-bed tables, trapeze devices or scales.

This provision was effective Sept. 1, 2013.

Staff Leasing Services

Senate Bill 1286 amends Tax Code Chapters 151 and 171 to reflect that “Staff Leasing Services” are now called “Professional Employment Services.”

This provision was effective September 1, 2013.

Enterprise Zones

Senate Bill 1548 amends Government Code Section 2303.003 and expands the definition of a “qualified employee” under the Texas Enterprise Zone Program to include employees who transport the enterprise project’s goods or services.

This provision was effective June 14, 2013.

For Further Information

Texas Comptroller of Public Accounts – Tax Policy News