SALT Report 3460 –Act No. 2014-453 added rental tax to the durable medical equipment exemption, effective August 1, 2014.
“Section 40-9-30(d) was added to exempt any items used for the treatment of illness or injury or to replace all or part of a limb or internal body part purchased by or on behalf of an individual pursuant to a valid prescription and covered by and billed to Medicaid, Medicare, or a health benefit plan from state, county, and municipal sales, use and rental and leasing taxes including, but not limited to, any of the following: durable medical equipment, including repair parts and the disposable or single patient use supplies required for the use of the equipment; medical oxygen and related equipment and supplies; prosthetic and orthotic devices; and medical supplies, as defined and covered under the Medicare program, including, but not limited to, items such as catheters, catheter supplies, ostomy bags and supplies related to ostomy care, specialized wound care products, and similar items that are covered by and billed to Medicare, Medicaid, or a health benefit plan. Section 1 of Act 2013-443, codified as Section 40-9-39.1 was repealed.”
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