Colorado: Some Medical Products Exempt From Sales Tax
- Oct 31, 2012 | Gail Cole
(C.R.S. 39-26-717) In order to qualify for the exemption, a product must meet one of the following qualifications:
- Materials Furnished as Part of a Licensed Provider's Professional Service: They must leave the licensed provider's office with the patient.
Durable Medical Equipment: Equipment, including necessary repair and replacement parts, that:
- Is not worn in or on the body;
- Can withstand repeated use;
- Is primarily used for medical purposes
- Is generally not useful to a person in the absence of illness or injury.
- Prosthetic Device: An artificial part which replaces part of a body or assists a bodily function.
The recent Colorado letter ruling concerned a biotechnology company which sold a product that assists with surgical grafts. Though the product in question did not meet the definition of durable medical equipment or prosthetic device, it did qualify for the materials furnished exemption.