Information Guide

Identifying Information:For-Profit Hospitals, Surgical, Dialysis and other Medical Facilities
Self-Audit Fact Sheet
Tax Type:Kansas Retailers' Sales Tax
Brief Description:For-Profit Hospitals, Surgical, Dialysis and other Medical Facilities
Self-Audit Fact Sheet
Keywords:
Approval Date:06/25/2012


Body:
KANSAS DEPARTMENT OF REVENUE
AUDIT SERVICES
For-Profit Hospitals, Surgical, Dialysis and other Medical Facilities
Self-Audit Fact Sheet


The taxability of sales and purchases of tangible personal property and labor services by For-Profit Hospitals, Surgical, Dialysis and other Medical Facilities. This list is not all-inclusive.

Purchases by For-Profit Hospitals, Surgical, Dialysis and other Medical Facilities:
Kansas sales or compensating use tax applies to those purchases identified or designated as taxable in the chart below. The applicable Kansas sales or Kansas consumers’ use tax must be paid to the vendor or accrued and remitted directly to the Kansas Department of Revenue. Purchases from Kansas vendors may be reported using the retailers’ sales tax return. Purchases from outside this state which are delivered to this state are to be reported on the Kansas consumers compensating use tax return.

Purchases for use
Office equipment and supplies including but not limited to: computers, laptops, calculators, copiers, desks, printers, fax machines, writing utensils, office forms, paper, toner cartridges etc.Taxable
Furniture and fixtures including but not limited to: desks, lamps, tables, chairs, stools, curtains, drapes, mattresses, beds, pillows, sheets, blankets, pillow covers, mattress protectors, pictures, posters and other artwork, televisionsTaxable
Restroom and janitorial supplies such as: mops, brooms, vacuums, carpet cleaners, sweepers, scrubbers, floor waxers, bath tissue, facial tissues, trash bags, towels, washcloths, rags, linen and laundry services, disinfectant and other cleaning suppliesTaxable
Cribs, bassinets, changing stations and infant bedsTaxable
Gowns, bibs, aprons, smocks, lab coats, mealtime protectors, face masksTaxable
Hot and cold packs, elastic bandages, band aids, scissors, forceps, nose clips, gauze bandages and dressings, alcohol, alcohol pads, tongue depressors, gel packs, basins, medical kits for treatment and testing, etc. Taxable
Medical equipment such as wheelchairs, walkers, canes, crutches, and rollators, used at the hospital or medical facility, including wheelchair cushions, braces and supports that do not become part of the chair Taxable
Bath chairs and benches, raised toilet seats, toilet safety frames, and bed pans Taxable
Braces, supporters, cushions, mats and wedges for arms, legs, ankles, back, lumbar etc used at the hospital or medical facilityTaxable
Sterilizers, air purifiers and warming cabinetsTaxable
Shelving, storage and display racks, cases and cabinets, equipment stands, storage cabinets, dispensers, carts etc. Taxable
Equipment used to provide medical services including but not limited to: injection, lab and blood drawing chairs, instrument stands, treatment tables, step stools, examination and surgery lights and lamps, height and weight measuring devices and scales, microscopes, protective eye gear, medication measuring scales and devices, scalpels, needles etc.Taxable
Patient safety equipment such as patient slings and lifts, lift chairs and seats, patient monitors and alarms, rehabilitation and physical therapy equipment such as parallel bars, exercise balls, weights, whirlpools etc.Taxable
Diagnostic devices and equipment including: thermometers, stethoscopes, otoscopes and other scopes and illuminators, blood pressure monitors and cuffs, cameras, x-ray equipment, x-ray wraps and aprons, biopsy punches, etc. Taxable
Disposable briefs and underwear, absorbent pads, bed pads, nursing pads, etc.Taxable
Items purchased for resale or rental, including freight or delivery charges Exempt
Prescription drugs, insulinExempt
Freight or delivery charges, billed by the vendor, on purchases subject to sales/use taxTaxable
Educational materials, posters, literature, anatomical models and charts etc.Taxable
Equipment such as but not limited to motor vehicles, forklifts, pallet trucks, lift trucks, hydraulic equipment, conveyors, dollies, ladders, batteries and chargers, fans, dock plates, etc. including the charges for repair and/or maintaining said equipment Taxable
Canned Software and software upgrades and labor services to modify, alter, update or maintain software.Taxable
Customized software, software upgrades and labor services to modify, alter, update or maintain customized software - "customized" software = software developed for a single end user Exempt

Purchases for use continued
Newspaper and magazine subscriptions, reference books and materials, coding manuals (for insurance claims), forms, printed matter (including promotional brochures, etc.), business cards, notepads Taxable
Lease or rental of any tangible personal property - copier, fax, vehicleTaxable
Repairs and maintenance, including labor services to existing structures. Taxable
Parts and labor services of repairing, servicing, altering or maintaining tangible personal property, such as computers, printers, copiers, etc. Taxable
Security cameras, mirrors, and other security equipmentTaxable
Warranty or service agreements for tangible personal property such as, computers, printers, copiers, security equipment, etc. Taxable
Security system monitoring serviceExempt
Cleaning services, plant watering and care Exempt
Advertising as in newspapers, radio, television, etc. Exempt
Professional services such as legal or accounting services Exempt
Break room supplies such as microwaves, refrigerators, tables, chairs, paper products, etc. Taxable
Tangible property to be given away or donated. (Items that are given away or donated to a tax exempt entity are not subject to sales tax)Taxable
Complimentary bottled water, soft drinks, coffee, creamer, sugar, cups and stir sticks, balloons, stickers, pens and candy Taxable
Trash removal Exempt
Promotional items including but not limited to calendars, mugs, and items of clothing Taxable
Items purchased for resale in a hospital operated gift shop, cafeteria, lunch room, or dining room Exempt
Printed materials provided to a newspaper or other publication that is to be included as an insert in the newspaper or publication that is to be sold at retail. Exempt
Signs, banners or posters purchased from an outside printer or the costs of all materials if produced internally Taxable
Exterior building or parking lot signage, including charges for parts and labor for repairs and maintenanceTaxable



The taxability of sales of tangible personal property and labor services by For-Profit Hospitals, Surgical, Dialysis and other Medical Facilities, is summarized below. This list is not all inclusive. The applicable sales tax must be collected unless the purchaser provides a properly completed exemption certificate.

Sales
Charges for providing medical servicesExempt
Dietary supplements prescribed by licensed or mid-level practitioner, (seller must retain documentation of the prescription to document the exemption)Exempt
Nonprescription drugs, dietary supplements etc.Taxable
Prescription drugs, mobility enhancing equipment, oxygen delivery equipment, enteral feeding systems, kidney dialysis equipment, and prosthetic devices prescribed to individual patients, (seller must document the exemption)Exempt
Sales of tangible personal property (including freight, shipping and delivery charges) by a hospital operated gift shop, including but not limited to: clothing, books, magazines, newspapers, jewelry, cosmetics, food, drinks, flowers, plants, etc. Taxable
Sales of food and beverage by a cafeteria, lunch room, or dining room that is available for use by the general publicTaxable




Date Composed: 06/25/2012 Date Modified: 06/25/2012