Keeping track of various sales and use tax exemptions could drive a person batty. State legislators are forever creating new exemptions, making adjustments to existing exemptions, and expiring exemptions deemed out-of-style. Sometimes, lawmakers even change the date an exemption is set to take effect. One wonders if they’re being coy.
Case in point: Alabama Act 2013-443 exempts from Alabama sales and use tax “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 a third party payer….” The Act was set to take effect October 1, 2014. However, recent legislation accelerates the effective date, moving it to August 1, 2014.
Exempt items include, but are not limited to:
- Medical oxygen and related equipment and supplies;
- Medical supplies such as catheters and ostomy bags;
- Prosthetic and orthotic devices; and
- Repair parts and the disposable or single patient use supplies required for the use of the equipment.
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