Which of seven medicated lotions and powders qualified as tax-exempt common household remedies in Florida?

Plain-English summary

The Florida Department of Revenue classified five of seven reviewed skin-care products as tax-exempt common household remedies. They were an eczema-relief lotion, a medicated body lotion, medicated baby powder, medicated body powder, and medicated foot powder.

Those products were designed and marketed to cure, prevent, or relieve rashes and other skin conditions. The Department placed them within the itch-and-rash-reliever category on Florida's Nontaxable Medical and General Grocery List.

The other two products—a daily moisturizing lotion and a clear-complexion lotion—were taxable cosmetics. Their intended use was cleansing, beautifying, promoting attractiveness, or altering appearance, and medicinal ingredients did not by themselves remove them from the taxable cosmetics category.

What this means for you

Retailers of skin-care products

Classification depends on how a product is designed and marketed, not merely on whether its label contains an FDA Drug Facts panel. Keep product packaging and intended-use materials that show treatment of a specific condition.

Product manufacturers

Claims centered on eczema, itching, rash, chafing, diaper rash, or minor irritation supported exemption for the five reviewed products. General moisturizing and complexion claims supported taxable cosmetic treatment for the other two.

Accountants and tax professionals

Compare the product's intended use with section 212.08(2)(a), Rule 12A-1.020, and Form DR-46NT. The ruling is product-specific and does not establish that every medicated lotion or powder is exempt.

Common questions

Q: Were all seven products exempt because they contained recognized drugs?
A: No. Two products were taxable cosmetics despite medicinal ingredients.

Q: Which products qualified for exemption?
A: The eczema-relief lotion, medicated body lotion, medicated baby powder, medicated body powder, and medicated foot powder.

Q: Did the ruling require individual prescriptions for those five products?
A: No. The Department treated them as exempt common household remedies based on their intended and marketed uses.

Citations and references

• Fla. Stat. §§ 212.05, 212.055, 212.08(2)(a), and 213.22
• Fla. Admin. Code r. 12A-1.020(5)-(6)
• Florida Form DR-46NT, Nontaxable Medical and General Grocery List

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 17A-028

Original ruling text

Executive Director
Leon M. Biegalski

QUESTION:
Are the subject powders and lotions “common household remedies” that are exempt from sales tax?
ANSWER:
The following lotions and powders are exempt “common household remedies.”
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XXXX Eczema Relief Lotion,
XXXX Medicated Body Lotion,
XXXX Medicated Baby Powder,
XXXX Medicated Body Powder, and
XXXX Medicated Foot Powder.

The remaining products, XXXX [Daily] Moisturizing Lotion and XXXX Clear Complexion Lotion, are
“cosmetics” subject to sales tax.
October 6, 2017

XX
Re:

Technical Assistance Advisement 17A-028
Sales and Use Tax– Common Household Remedies
Sections 212.05, 212.055, and 212.08, Florida Statutes (F.S.)
Rule 12A-1.020, Florida Administrative Code (F.A.C.)
Form DR-46NT, Nontaxable Medical and General Grocery List
XX
FEI # XX (the Retailer)

Dear XX:
This is in response to your letter dated March 8, 2017, requesting this Department’s issuance of a
Technical Assistance Advisement (“TAA”) pursuant to section 213.22, F.S., and Rule Chapter 12-11,
F.A.C., concerning the taxability of several products that your company plans on offering for sale at retail
in Florida. An examination of your letter has established you have complied with the statutory and
regulatory requirements for issuance of a TAA. Therefore, the Department is hereby granting your
request for a TAA.
Facts
Child Support – Ann Coffin, Director  General Tax Administration – Maria Johnson, Director
Property Tax Oversight – Dr. Maurice Gogarty, Director  Information Services – Damu Kuttikrishnan, Director

www.floridarevenue.com
Florida Department of Revenue
Tallahassee, Florida 32399-0100

Technical Assistance Advisement
Page 2 of 4

Your letter dated March 8, 2017, provides the following in part:
[The Retailer] seeks sales tax determinations for several powders and lotions sold in Florida.
Retailer has provided the names and images of each of the products and an outline of relevant
Florida tax law, regulations and rules.

Products
Retailer requests a ruling as to the taxability of the following lotions and powders. Each product
contains at least one FDA - recognized drug or medicine (as evidenced by the FDA “Drug Facts”
panel). Some products contain more than one active ingredient/drug.
1) XX [Daily] Moisturizing Lotion for dry skin. Product contains dimethicone, an FDA recognized skin protectant.
2) XX Eczema Relief Lotion for dry skin/eczema. The product contains a single FDA - recognized
active ingredient, colloidal oatmeal (skin protectant).
3) XX Body Lotion for dry, itchy skin. In addition to an FDA - recognized skin protectant
(dimethicone), this product contains a second drug for anti-itch relief (menthol).
4) XX Clear Complexion Lotion, a daily moisturizing lotion that contains an acne medication.
5) XX Medicated Baby Powder for treatment of chafed skin and diaper rash, Similar to the first
two lotions above, this product contains a single FDA - recognized skin protectant.
6) XX Medicated Body Powder, a product that contains both an FDA - recognized skin protectant
(zinc oxide) and an anti-itch medicine (menthol).
7) XX Medicated Foot Powder, a product that temporarily relieves the pain and itch associated
with minor skin irritation on the foot. This product contains menthol, an FDA - recognized antiitch medication.

Along with the request for advisement, you included images of the product’s packaging.
Applicable Authority and Discussion
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, unless a specific
exemption applies. 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 sale of medical products dispensed according to individual
prescriptions written by licensed practitioners are exempt from Florida’s sales and use tax. Rule 12A1.020(6)(a), F.A.C., defines medical products, supplies or devices as any products, supplies, or devices

Technical Assistance Advisement
Page 3 of 4

that are intended or designed to be used for a medical purpose to treat, prevent, or diagnose human
disease, illness, or injury.
Skin problems such as acne, eczema, and, diaper rash are considered medical conditions. Products
recommended and intended to be used to treat these conditions are exempt from sales tax. Section
212.08(2)(a), F.S., provides that the sales of certain “common household remedies recommended and
generally sold for internal or external use in the cure, mitigation, treatment, or prevention of illness or
disease in human beings” are specifically exempt from sales tax. The section provides that “cosmetics or
toilet articles, notwithstanding the presence of medicinal ingredients therein,” are subject to sales tax.
Rule 12A-1.020(5)(b)1., F.A.C., provides that the term “cosmetics” is defined to mean, “any article
intended to be rubbed, poured, sprinkled, sprayed on, introduced into, or otherwise applied to the human
body for cleansing, beautifying, promoting attractiveness, or altering the appearance.”
Rule 12A-1.020(5)(b)2., F.A.C., provides that the term “toilet articles” is defined to mean “any article
advertised or held out for sale for grooming purposes and those articles which are customarily used for
grooming purposes . . . .”
In accordance with section 212.08(2)(a), F.S., Rule 12A-1.020(5), F.A.C., and Form DR-46NT,
Nontaxable Medical and General Grocery List, prescribed and approved by the Division of Drugs,
Devises and Cosmetics of the Department of Business and Professional Regulation, indicates specific
items that are exempt from tax as “Common Household Remedies.” Form DR-46NT also provides
specific items that considered to be toiletries and cosmetics that are subject to sales tax.
Form DR-46NT, provides that cold cream, suntan lotion, makeup, body lotion, soap, toothpaste, hair
spray, shaving products, cologne, perfume, shampoo, deodorant, and mouthwash are examples of taxable
cosmetics and toiletries.
Form DR-46NT, provides that the following “common household remedies” are exempt from sales tax:
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Itch and rash relievers
Lotions, medicated
Ointments, medicated
Pain relievers, oral or topical
Skin medications
Conclusions

Review of the seven products listed in your letter reveals that five of the seven products are designed and
marketed specifically to be sold for use to cure, prevent, and relieve rashes and other skin conditions. The
following lotions and powders are exempt as “itch and rash relievers,” as listed in the Nontaxable Medical
Items and General Grocery List (DR-46NT):
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XX Eczema Relief Lotion,
XX Medicated Body Lotion,

Technical Assistance Advisement
Page 4 of 4

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XX Medicated Baby Powder,
XX Medicated Body Powder, and
XX Medicated Foot Powder.

The remaining products, XX [Daily] Moisturizing Lotion and XX Clear Complexion Lotion, are intended
to be used in “cleansing, beautifying, promoting attractiveness, or altering [a person’s] appearance.”
These products are “cosmetics” subject to sales tax.
This response constitutes a Technical Assistance Advisement under section 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 section 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 that 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 section 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 15 days of the date of this letter.
Sincerely,

Brinton Hevey
Tax Law Specialist
Technical Assistance and Dispute Resolution
850/717-6839
Record ID: 212932