Questions and Answers

Identifying Information:Prescription Requirement in Sales Tax Exemption for Prosthetic Devices and Mobility Enhancing Equipment
Tax Type:Kansas Retailers' Sales Tax
Brief Description:Prescription is required for purchase of prosthetic device or mobility enhancing equipment to be exempt, but prescription need not be written.
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Approval Date:03/23/2005



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QUESTION: Must a prescription for a prosthetic device or mobility enhancing equipment be written in order for the purchase to be exempt under K.S.A. 2003 Supp. 79-3606(r)?

ANSWER: No. It may be in any form of oral, written, electronic or other means of transmission by a person licensed to practice the healing arts, dentistry or optometry.

Explanation: K.S.A. 2004 Supp. 79-3606(r) exempts from sales tax “all sales of prosthetic devices and mobility enhancing equipment prescribed in writing by a person licensed to practice the healing arts, dentistry or optometry.” The term “prescription” is defined at K.S.A. 2004 Supp. 79-3602(bb) as follows: “an order, formula or recipe issued in any form of oral, written, electronic or other means of transmission by a duly licensed practitioner authorized by the laws of this state.” This definition of “prescription” is contained in the Streamlined Sales and Use Tax Agreement (Agreement) adopted November 12, 2002, as amended, and is required to be adopted by any state seeking membership in the Agreement. Kansas adopted the uniformity provisions required by the Agreement, including the necessary definitions, in 2003 House Bill 2005, effective July 1, 2003. The Agreement further provides that if a state provides a sales tax exemption for prosthetic devices or mobility enhancing equipment, it may limit that exemption by requiring a prescription. K.S.A. 2003 Supp. 79-3606(r) includes the prescription limitation on the sales tax exemption for purchases of prosthetic devices or mobility enhancing equipment. The Department interprets the prescription limitation contained in K.S.A. 2004 Supp. 79-3606(r) as being consistent with the Agreement. Therefore, a prescription for a prosthetic device or mobility enhancing device, whether such prescription form be in oral, written, electronic or other means of transmission by a person licensed to practice the healing arts, dentistry or optometry, will meet the requirements of K.S.A. 2004 Supp. 79-3606(r), for purposes of qualifying for that sales tax exemption.



Date Composed: 03/23/2005 Date Modified: 03/23/2005