Were catheter securements, arterial bandages, and disposable or reusable blood-pressure cuffs exempt from Florida sales tax?

Plain-English summary

The Florida manufacturer sold catheter and feeding-tube securements, sterile suture-free arterial bandages, and disposable and reusable blood-pressure cuffs.

Florida ruled that the securements and arterial bandages were exempt as bandages, bandaging materials, or adhesive tape. Both reusable and disposable cuffs were exempt as parts used with blood-pressure monitors.

The TAA also addressed resale documentation. A Multistate Tax Commission Uniform Sales and Use Tax Certificate was acceptable only with a Florida transaction-specific authorization number or a calendar-year vendor resale authorization number obtained from the Department.

What this means for you

Medical-product exemptions can follow the product's functional category even when an item is sold separately. Exempt product treatment and resale documentation are distinct: a reseller still needs the authorization required for its certificate.

Common questions

Were Grip-Lok securements and arterial anchor bandages exempt? Yes.

Were reusable cuffs exempt as well as disposable ones? Yes.

Was a multijurisdiction resale certificate enough by itself? No; the ruling required a Florida authorization number.

Citations and references

• Fla. Stat. §§ 212.05, 212.055, 212.07, and 212.08(2) and Fla. Admin. Code rr. 12A-1.020 and 12A-1.039, as listed or discussed in the advisement.

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 10A-041

Original ruling text

SUMMARY
QUESTION: Are the sales of the following medical products, Grip-Lok Securements,
Arterial Anchor Bandages, and disposable and reusable blood pressure cuffs, exempt
from Florida sales and use tax?
ANSWER: Sales of Grip-Lok Securements and Arterial Anchor Bandages are
specifically exempt from sales tax under the provisions of Section 212.08(2), F.S., and
Rule 12A-1.020(5)(a)1., F.A.C., as Common Household Remedies, bandages, and
bandaging materials and adhesive tape. Sales of disposable and reusable blood pressure
cuffs are specifically exempt from sales tax under the provisions of Section 212.08(2),
F.S., and Rule 12A-1.020(7)(a)7., F.A.C., as blood pressure monitors, kits and parts.

August 17, 2010

XXX
XXX
XXX
Re:

Technical Assistance Advisement 10A-041
Florida Sales and Use Tax
Medical Products and Supplies
Sections 212.05, 212.055, 212.07, 212.08(2), Florida Statute (F.S.)
Rules 12A-1.020, 12A-1.039, Florida Administrative Code (F.A.C.)
Petitioner: XXX (“Taxpayer”)

Dear :
This letter is a response to your petition dated April 8, 2010, for the Department's
issuance of a Technical Assistance Advisement ("TAA") concerning the above
referenced petitioner and matter. Your petition has been carefully examined and the
Department finds it to be in compliance with the requisite criteria set forth in Chapter 1211, F.A.C. This response to your request constitutes a TAA and is issued to you under the
authority of Section (s.) 213.22, F.S.
FACTS
Taxpayer is located in Florida and is currently registered with the Department for Florida
sales and use tax purposes. Taxpayer is a manufacturer and supplier of disposable
medical products and air sampling equipment used to monitor indoor environmental,
occupational health and safety conditions.

Two products Taxpayer sells are Grip-Lok Securements and Arterial Anchor Bandages.
Grip-Lok Securements are used for the securing of feeding tubes and other lines, as well
as securing catheters on patients with delicate skin. Arterial Anchor Bandages are used
to secure arterial lines on patients in one simple, sterile, and suture-free procedure.
Also, Taxpayer designs and manufactures disposable and reusable blood pressure cuffs
for leading blood pressure measurement instrument makers. The cuffs come in a range of
sizes, materials, and connectors and are sold separately and not with a kit. All of
Taxpayer’s distributors located in Florida have provided Taxpayer with a copy of their
resale certificate for sales of these products in lieu of paying sales tax on the sales price.
It is Taxpayer’s belief that the sales of Grip-Loks and Arterial Anchor Bandages are
exempt from sales tax under the provisions of Section 212.08(2)(a), F.S., and Rule 12A1.020(2)(a), F.A.C, as a common household remedy listed as bandages and adhesive tape.
In support of its position, Taxpayer has provided a copy of a letter issued by the
Department dated May 5, 1996, stating that these products were exempt from sales tax.
No advice was provided in the letter regarding the blood pressure cuffs.
REQUESTED ADVISEMENTS
Are the sales of the medical products cited in Taxpayer’s letter dated April 8, 2010, and
referenced above, Grip-Lok Securements, Arterial Anchor Bandages, and disposable and
reusable blood pressure cuffs, exempt from Florida sales and use tax?
Taxpayer also requests clarification regarding the Department’s position on acceptance of
the Uniform Sales and Use Tax Certificate - Multi-Jurisdiction for taxable sales
transactions.
ANALYSIS and DISCUSSION
Medical Products
Unless a specific exemption applies, Section 212.05, F.S., provides it is the legislative
intent that every person is exercising a taxable privilege that engages in the business of
selling tangible personal property at retail in this state. For exercising such a privilege, a
tax is levied on each taxable transaction or incident. The tax is due and payable at the
rate of 6 percent, plus any applicable surtaxes imposed under Section 212.055, F.S., on
the total consideration received for each item or article of tangible personal property
when sold at retail in this state.
Section 212.08(2)(a), F.S., provides that the sales of certain medical products and
supplies are specifically exempt from sales tax. In accordance with s. 212.08(2)(a), F.S.,
Rule 12A-1.020, F.A.C., and Form DR-46NT, Nontaxable Medical and General Grocery
List, prescribed and approved by the Department of Health, indicate specific items that
are exempt from tax.

Form DR-46NT, provides, under Common Household Remedies, that bandages and
bandaging materials and adhesive tape are exempt from tax.
Therefore Taxpayer’s sales of Grip-Lok Securements and Arterial Anchor Bandages are
specifically exempt from sales tax under the provisions of Section 212.08(2), F.S., and
Rule 12A-1.020(5)(a)1., F.A.C., as Common Household Remedies, bandages and
bandaging materials and adhesive tape.
In regards to the disposable and reusable blood pressure cuffs, Rule 12A-1.020(7)(a),
F.A.C., provides in part, as follows:
(a) The sale of chemical compounds and test kits used for the diagnosis or
treatment of human disease, illness, or injury is exempt. The following is a
nonexhaustive list of chemical compounds and test kits that are not subject
to tax:

7. Blood pressure monitors, kits, and parts;

Taxpayer’s sales of disposable and reusable blood pressure cuffs would be specifically
exempt from sales tax under the provisions of Section 212.08(2), F.S., and Rule 12A1.020(7)(a)7., F.A.C., as parts used in conjunction with blood pressure monitors.
Sales for Resale
Sales for resale are not subject to tax and garner the treatment of an exempt sale when
conducted in strict compliance with statutory and rule provisions. See Section 212.07,
F.S. Rule 12A-1.039, F.A.C., provides guidance concerning sales for resale. In
subsection (8) of this Rule, the Department addresses use of the Multistate Tax
Commission’s Uniform Sales and Use Tax Certificate-Multijurisdiction. This rule
specifically provides that use of this type of certificate is acceptable, but it must be in
conjunction with obtaining a telephonic or electronic authorization number from the
Department. An authorization number may be obtained for a single transaction or for a
calendar year.
A “transaction resale authorization number” is obtained for a single transaction and must
be obtained prior to sale or at the point-of-sale by a dealer. Alternatively, a dealer may
elect to obtain a “Vendor Resale Authorization Number” for its regular customers that
will be valid for the calendar year issued. Dealers may obtain either type of authorization
by using the Department’s on-line Certificate Verification System at
www.myflorida.com/dor/eservices.

CONCLUDING STATEMENT
Taxpayer’s sales of Grip-Lok Securements and Arterial Anchor Bandages are specifically
exempt from sales tax under the provisions of Section 212.08(2), F.S., and Rule 12A1.020(5)(a)1., F.A.C., as Common Household Remedies, bandages, and bandaging
materials and adhesive tape. Taxpayer’s sales of disposable and reusable blood pressure
cuffs are specifically exempt from sales tax under the provisions of Section 212.08(2),
F.S., and Rule 12A-1.020(7)(a)7., F.A.C., as blood pressure monitors, kits and parts.
This response constitutes a Technical Assistance Advisement under S. 213.22, F.S.,
which is binding on the Department only under the facts and circumstances described in
the request for this advice, as specified in S. 213.22, F.S. Our response is predicated on
those facts and the specific situation summarized above. You are advised that subsequent
statutory or administrative rule changes or judicial interpretations of the statutes or rules
upon which this advice is based may subject similar future transactions to a different
treatment than expressed in this response.
You are further advised that this response, your request, and related backup documents
are public records under Chapter 119, F.S., and are subject to disclosure to the public
under the conditions of S. 213.22, F.S. Confidential information must be deleted before
public disclosure. In an effort to protect confidentiality, we request you provide the
undersigned with an edited copy of your request for Technical Assistance Advisement,
the backup material, and this response, deleting names, addresses, and any other details
which might lead to identification of the taxpayer. Your response should be received by
the Department within 10 days of the date of this letter.
If you have any further questions with regard to this matter and wish to discuss them, you
may contact me directly at 850-488-8026.
Kind Regards,

Alan R. Fulton
Tax Law Specialist
Technical Assistance & Dispute Resolution
ARF\pb
Record ID:

81941