Are disposable medical electrodes exempt from Kansas sales tax as prosthetic or orthopedic appliances?

Plain-English summary

A requester asked whether disposable electrodes — the single-use medical electrodes used with monitoring or stimulation equipment — qualify for Kansas's sales-tax exemption for prosthetic and orthopedic appliances. The Department's answer is no; they are taxable.

The exemption and its limits. The Department quoted K.S.A. 79-3606(r), which exempts "all sales of prosthetic and orthopedic appliances prescribed in writing" by a licensed healing-arts, dentistry, or optometry provider. The statute defines those appliances as apparatus or equipment used to replace or substitute for a missing body part, alleviate the malfunction of a body part, or assist a disabled person's mobility.

Why electrodes fall outside it. The Department concluded that "the disposable electrodes would not come within the scope of the sales tax exemption in K.S.A. 79-3606(r), and therefore, would not be exempt from sales tax." Its reasoning: the disposable electrodes do not replace or substitute for any missing part of the body and are not devices to alleviate the malfunction of a body part in the sense the exemption requires. They simply do not fit the statutory definition of a prosthetic or orthopedic appliance.

Bottom line: the prosthetic/orthopedic exemption is defined narrowly around replacing, correcting, or aiding the body itself. Consumable medical accessories like disposable electrodes are not covered, so their sale is subject to Kansas sales tax.

What this means for you

Medical suppliers and equipment sellers

Do not assume that "medical" items ride the 79-3606(r) exemption. That exemption is limited to prescribed prosthetic and orthopedic appliances that replace a missing body part, correct a malfunction, or aid mobility. Disposable, consumable, or accessory items — like electrodes — generally do not qualify and are taxable.

Test each item against the statutory definition

The right question is not whether an item is used in health care, but whether it replaces/substitutes for a missing body part, alleviates a body malfunction, or facilitates a disabled person's mobility — and whether it is prescribed in writing. If an item fails that test, treat it as taxable.

Prescription alone will not save a non-qualifying item

Even a prescribed item must still fit the definition of a prosthetic or orthopedic appliance. Here the Department did not treat the electrodes as qualifying regardless, because they do not perform the functions the statute lists.

Common questions

Q: Are disposable electrodes exempt from Kansas sales tax?
A: No. The Department ruled they do not come within the K.S.A. 79-3606(r) prosthetic/orthopedic appliance exemption, so they are subject to Kansas sales tax.

Q: Why don't they qualify?
A: Because they do not replace or substitute for a missing body part, alleviate a body malfunction, or assist a disabled person's mobility — the functions the exemption's definition requires.

Q: Would a prescription make them exempt?
A: The exemption requires both a written prescription and that the item fit the statutory definition of a prosthetic or orthopedic appliance. Disposable electrodes do not fit that definition, so they remain taxable.

Citations and references

• K.S.A. 79-3606(r) — exempts prescribed prosthetic and orthopedic appliances (apparatus used to replace a missing body part, alleviate a body malfunction, or aid a disabled person's mobility); the Department found disposable electrodes fall outside this definition and are therefore taxable.

Source

• Landing page: Kansas Department of Revenue Policy Information Library
• Original document: P-2001-109

Original ruling text

Private Letter Ruling

Body:

Office of Policy & Research

October 12, 2001

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Dear Ms. TTTTTTT:

We wish to acknowledge receipt of your letter postmarked September 25, 2001, regarding the application of Kansas Retailers’ Sales Tax.

K.S.A. 79-3606(r) exempts from 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 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. . .”

Please be advised that it is the opinion of this office that the disposable electrodes would not come within the scope of the sales tax exemption in K.S.A. 79-3606(r), and therefore, would not be exempt from sales tax in the state of Kansas. The reason being is that the disposable electrodes do not replace or substitute for any missing part of the body; used to alleviate the malfunction of any part of the body.

This is a private letter ruling pursuant to K.A.R. 92-19-59. It is based solely on the facts provided in your request. If it is determined that undisclosed facts were material or necessary to an accurate determination by the department, this ruling is null and void. This ruling will be revoked in the future by the operation of law without further department action if there is a change in the statutes, administrative regulations, or case law, or published revenue ruling, that materially effects this private letter ruling.

If I may be of further assistance, please contact me at your earliest convenience at (785) 296-7776.

Sincerely yours,

Thomas P. Browne, Jr.
Tax Specialist

TPB

Date Composed: 10/15/2001 Date Modified: 10/26/2001

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