Is an external defibrillator exempt from Kansas sales tax when sold under a physician's written order?

Plain-English summary

A seller asked whether an external defibrillator qualified for exemption from Kansas retailers' sales tax when sold under a physician's written order.

The Department answered no. K.S.A. 79-3606(r) exempted written-prescription sales of prosthetic devices and mobility-enhancing equipment, but an external defibrillator did not meet either category's definition or use requirements.

Mobility-enhancing equipment had to be primarily and customarily used to increase a person's ability to move from place to place and be appropriate for use in a home or motor vehicle. A prosthetic device had to be worn on or in the body to replace a missing body part, prevent or correct a deformity or malfunction, or support a weak or deformed body part.

The physician order satisfied only one part of the exemption framework; it did not change the device's classification. Because the defibrillator was neither qualifying mobility equipment nor a prosthetic device, the sale was taxable.

What this means for you

Medical-device sellers

Do not treat every physician-ordered device as exempt. Confirm that the item itself satisfies a statutory exempt-device definition.

Healthcare purchasers

A written order alone was insufficient for this external defibrillator. The device's design and use had to fit the statute.

Tax professionals

Apply both the prescription requirement and the relevant product definition. Failing either element defeats the exemption described in the opinion.

Common questions

Q: Is a physician-ordered external defibrillator exempt?
A: No. The Department said it did not meet the statutory definitions.

Q: Was it mobility-enhancing equipment?
A: No. It was not primarily used to help a person move from place to place.

Q: Was it a prosthetic device?
A: No. It was not worn on or in the body for the functions listed in the statute.

Q: Does a prescription automatically exempt a medical device?
A: No. The device must also fit an exempt category.

Citations and references

• K.S.A. 79-3606(r) — prescribed prosthetic devices and mobility-enhancing equipment

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: O-2004-004

Original ruling text

Opinion Letter

Body:

Office of Policy & Research

April 30, 2004

XXXXXXXXXXX
XXXXXXXXXXXXXX
XXXXXXXXXXXXXXXX

Dear Sirs:

The purpose of this letter is to respond to your request dated February 16, 2004. In it you ask if a “XXXXXXXXXXXXXXX” which is commonly known as an “external defibrillator” that is sold pursuant to written order issued by a physician would qualify for exemption from Kansas retailers’ sales tax.

The answer to you question is no. An external defibrillator does not meet the definitional or use requirements of the exempting statute K.S.A. 79-3606(r).

Kansas law exempts:

[A]ll sales of prosthetic devices and mobility enhancing equipment prescribed in writing by a person licensed to practice the healing arts, dentistry or optometry. For the purposes of this subsection: (1) ‘‘Mobility enhancing equipment’’ means equipment including repair and replacement parts to same, but does not include durable medical equipment, which is primarily and customarily used to provide or increase the ability to move from one place to another and which is appropriate for use either in a home or a motor vehicle; is not generally used by persons with normal mobility; and does not include any motor vehicle or equipment on a motor vehicle normally provided by a motor vehicle manufacturer; and (2) ‘‘prosthetic device’’ means a replacement, corrective or supportive device including repair and replacement parts for same worn on or in the body to artificially replace a missing portion of the body, prevent or correct physical deformity or malfunction or support a weak or deformed portion of the body;” K.S.A. 79-3606(r).

Sincerely,

Mark D. Ciardullo
Tax Specialist

MDC

Date Composed: 05/06/2004 Date Modified: 05/06/2004

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