Are implantable medical devices like filters, stents, and vascular grafts exempt from Kansas sales tax as prosthetic and orthopedic appliances?

Plain-English summary

A medical-device seller asked whether certain implantable products qualify as exempt prosthetic and orthopedic appliances. K.S.A. 79-3606(r) exempts from Kansas retailers' sales tax all sales of prosthetic and orthopedic appliances prescribed in writing by a person licensed to practice the healing arts, dentistry, or optometry. The statute defines such appliances as any apparatus, instrument, device, or equipment used to replace or substitute for a missing body part, to alleviate the malfunction of any body part, or to assist a disabled person in leading a normal life by facilitating mobility. The term includes accessories attached to motor vehicles, but not motor vehicles or property that becomes a fixture to real property when installed.

The Department agreed that the following implantable items qualify as prosthetic devices exempt from Kansas sales tax:

• Filters — a permanently implanted device to prevent pulmonary embolism, inserted via a carrier catheter and securing to the femoral artery or jugular vein wall.
• Stents — a wire mesh tube that props open a cleared artery, remaining permanently to hold it open and improve blood flow.
• Bile-duct stents — implanted to maintain the natural opening in the bile duct.
• Synthetic grafts — used to replace or repair damaged veins and arteries.
• Grafts — used to replace or repair damaged veins and arteries.
• Cardiovascular fabrics — used to replace or repair cardiovascular arteries.

What this means for you

If you sell implantable medical devices in Kansas, they can qualify for the prosthetic/orthopedic appliance exemption — but the statutory conditions matter.

• Written prescription required. The exemption applies to appliances prescribed in writing by a person licensed in the healing arts, dentistry, or optometry.
• Function-based definition. The device must replace/substitute for a missing body part, alleviate a malfunction, or aid a disabled person's mobility.
• The Department confirmed these devices qualify: vena cava-type filters, coronary and bile-duct stents, and synthetic vascular grafts/cardiovascular fabrics.
• Limits: the exemption does not extend to motor vehicles, or to property that becomes a fixture to real property when installed.

Common questions

Are stents and vascular grafts exempt from Kansas sales tax?
Yes. The Department agreed that stents (including bile-duct stents), vascular filters, synthetic grafts, and cardiovascular fabrics qualify as exempt prosthetic devices under K.S.A. 79-3606(r).

Is a prescription required for the exemption?
Yes. The appliance must be prescribed in writing by a person licensed to practice the healing arts, dentistry, or optometry.

What is a "prosthetic and orthopedic appliance"?
Any apparatus, instrument, device, or equipment used to replace a missing body part, alleviate a body-part malfunction, or aid a disabled person's mobility (including accessories attached to motor vehicles).

What is not covered?
Motor vehicles themselves, and personal property that becomes a fixture to real property when installed.

Citations and references

• K.S.A. 79-3606(r) — exempts sales of prosthetic and orthopedic appliances prescribed in writing by a licensed healing-arts, dentistry, or optometry practitioner, and defines the covered appliances.

Source

• Original ruling (DOCX): https://www.ksrevenue.gov/pildocs/rulings/P-1998-01.docx
• Kansas Policy Information Library: https://www.ksrevenue.gov/prpil.html

Original ruling text

Private Letter Ruling

Body:

Office of Policy & Research

January 9, 1998

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Dear XX XXXXXX,

I acknowledge receipt of your letter dated XXXXXXXXX, regarding the application of the Kansas retailers' sales tax.

K.S.A. 79-3606(r) exempts from Kansas retailers’ sales tax all sales of prosthetic and orthopedic appliances prescribed in writing by a person licensed to practice the healing arts, dentistry or optometry. For the purposes of this subsection, the term prosthetic and orthopedic appliances means any apparatus, instrument, device, or equipment used to replace or substitute for any missing part of the body; used to alleviate the malfunction of any part of the body; or used to assist any disabled person in leading a normal life by facilitating such person's mobility; such term shall include accessories to be attached to motor vehicles, but such term shall not include motor vehicles or personal property which when installed becomes a fixture to real property;

You stated that you believe that specific products fall under the state’s definition of prosthetic and orthopedic appliances. The department would agree that the following items would qualify as prosthetic devices exempt from Kansas retailers’ sales tax.

XXXXXXXXXXX Filters: This product is a permanently implanted device designed to prevent pulmonary embolism. The filter is inserted with the aid of a specially designed carrier catheter. Upon discharge from the carrier, the filter will secure itself to the femoral artery or jugular vein wall, becoming a permanent implant.

Stents: This product is a wire mesh tube used to prop open an artery that has recently been cleared. The stent remains in the artery permanently, holds it open, improves blood flow to the heart muscle and relieves symptoms (usually chest pain).

XXXXXXXXXX Stents: This product is used to maintain the natural opening in the bile duct. It is implanted into the body.

XXXXX Synthetic Grafts: This product is used to replace or repair damaged veins and arteries in the body.

XXXXXXX Grafts: This product is used to replace or repair damaged veins and arteries in the body.

XXXXXXXX Cardiovascular Fabrics: This product is used to replace or repair cardiovascular arteries.

Sincerely yours,

Mark D. Ciardullo
Tax Specialist

MDC

Date Composed: 01/12/1998 Date Modified: 10/10/2001

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