Were sales of a prescription-labeled, single-patient, nonreusable medical product to Florida hospitals exempt from sales tax?

Plain-English summary

Sales of the redacted medical product to Florida hospitals were exempt from sales and use tax.

The product's packaging carried an “RX-Only” label. Licensed practitioners used it to guide other products to a location inside the body; it was used once for a single patient and did not remain in the body. Those facts met the rule for prescription medical products sold to hospitals, healthcare entities, or licensed practitioners that are intended for one patient and are not reusable.

The revised facts mattered. An earlier request had described the item as not being a prescription product, while the request decided here stated that its packaging was Rx-only.

Common questions

Was the product taxable? No. Its Florida retail sales were exempt on the facts provided.

What facts drove the exemption? The Rx-only labeling, use by licensed practitioners, single-patient purpose, and nonreusable design.

Did the product have to remain inside the body? No. The ruling says it guided other products but did not remain in the body.

Does this exempt every hospital supply? No. The ruling applies the cited medical-product rule to this redacted product and its stated characteristics.

Citations and references

• Fla. Stat. §§ 212.05 and 212.08(2).
• Fla. Admin. Code r. 12A-1.020(6)(a), (c)1.

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 23A-001

Original ruling text

QUESTION: Are Taxpayer’s sales of
Florida Sales and Use Tax when sold at retail in Florida?

(“Product”) exempt from

ANSWER: Yes. Since Product carries a prescription label and is intended for use on a single
patient and is not intended to be reusable, Taxpayer’s sales of Product at retail in Florida would be
exempt from Florida Sales and Use Tax.
January 18, 2023

Via email:
Re:

Dear

Technical Assistance Advisement – TAA #: 23A-001
(“Taxpayer”)
Sales and Use Tax – Medical Product
Sections: 212.05 and 212.08(2), Florida Statutes - (“F.S.”)
Rule: 12A-1.020, Florida Administrative Code - (“F.A.C.”)
BP #:
FEI#:
:

This is in response to your email dated November 28, 2022, requesting this Department’s issuance
of a Technical Assistance Advisement (“TAA”) pursuant to Section(s.) 213.22, F.S., and Rule
Chapter 12-11 F.A.C, Florida Administrative Code, regarding the matter discussed below. Your
request has been carefully examined, and the Department finds it to be in compliance with the
requisite criteria set forth in Chapter 12-11, F.A.C. This response to your request constitutes a
TAA and is issued to you under the authority of s. 213.22, F.S.
Requested Advisement
Are Taxpayer’s sales of
Use Tax when sold at retail in Florida?

(“Product”) exempt from Florida Sales and

Technical Assistance Advisement
January 18, 2023
Page 2

Stated Facts
Taxpayer sells medical products to hospitals located in Florida. Taxpayer is registered as a dealer
to collect and remit Florida sales tax.
In a previous TAA request made by Taxpayer which was dated April 20, 2022, Taxpayer provided
the following information regarding Product:
“Product is used to guide the coils and other products in the
system to the location
within the body where the coils and other products will be housed. Product is a one-time
use item. Product is not inserted into the body, and Product does not stay in the body.
Product is not a prescription product.”
In a revised TAA request made by Taxpayer which was dated November 28, 2022, Taxpayer now
provides the following information regarding Product:
“Product is a one-time use item. Product’s packaging is labeled with the ‘RX-Only’
description. Product is used by licensed practitioners to guide the coils and other products
in the
system to the location within the body where the coils and other products will
be housed inside the body. Product does not stay in the body.”
Law and Discussion
Unless a specific exemption applies, s. 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
property1 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 s. 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.
Exemptions from tax are strictly construed against the claimant. Wanda Marine Corp. v. Dep't of
Revenue, 305 So. 2d 65, 69 (Fla. 1st DCA 1975).
Rule 12A-1.020(6)(a), F.A.C., defines “[m]edical products, supplies, or devices” as “any products,
supplies, or devices that are intended to be used for a medical purpose to treat, prevent, or diagnose
human disease, illness, or injury. The purpose is assigned to a product, supply, or device by its
label or its general instructions for use.”
Rule 12A-1.020(6)(c)1., F.A.C., provides that “[m]edical products, supplies, or devices sold to
hospitals, healthcare entities, or licensed practitioners are exempt when such medical products,
supplies, or devices must be dispensed under federal or state law only by the prescription or order
of a licensed practitioner and the medical products, supplies, or devices are intended for use on a
single patient and are not intended to be reusable.”
Section 212.02(19), F.S., defines the term “tangible personal property” as “personal property which may be seen,
weighed, measured, or touched or is in any manner perceptible to the senses.”
1

Technical Assistance Advisement
January 18, 2023
Page 3

Conclusion
Since Product carries a prescription label and is intended for use on a single patient and is not
intended to be reusable, sales of Product in Florida would be exempt from Florida Sales and Use
Tax.
This response constitutes a TAA 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 TAA, 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 ten (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)717-6363.
Sincerely,

Leigh L. Ceci
Leigh L. Ceci, MAcc
Tax Law Specialist
Technical Assistance & Dispute Resolution
(850)717-6363

Record ID: 7000876856

Technical Assistance Advisement
January 18, 2023
Page 4

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