Is the Safehip hip protector — an undergarment designed to prevent hip fractures and injuries — exempt from Texas sales tax, and does it matter whether it's sold to an individual or to a hospital/nursing home?

Plain-English summary

Someone asked the Comptroller about the taxability of the Safehip hip protector — an undergarment designed to help prevent hip fractures and injuries — after submitting a product brochure for review. The answer follows the same buyer-dependent pattern seen in other Texas medical-device rulings: the product is exempt as a therapeutic device when purchased tax-free by an individual with a doctor's prescription, but taxable when sold to hospitals, clinics, nursing homes, and other health care providers.

What this means for you

Elder-care product retailers and pharmacies

Sell the Safehip hip protector (or similar hip-fracture-prevention undergarments) tax-free to individual customers who have a doctor's prescription. If you're selling to an institutional buyer — a hospital, clinic, or nursing home — charge sales tax, since the exemption doesn't extend to those purchasers.

Hospitals, clinics, and nursing homes purchasing hip protectors for patient use

Expect to pay sales tax on hip protectors you buy for your facility's use, even though the same product is exempt when sold directly to an individual patient with a prescription.

Accountants and tax professionals

This is a straightforward application of the recurring individual-with-prescription-exempt / institutional-buyer-taxable pattern that shows up across many Texas therapeutic-device rulings — useful to flag for clients selling into both retail and institutional/wholesale channels for the same product.

Common questions

Q: Is the Safehip hip protector exempt from Texas sales tax?
A: Yes, when purchased by an individual with a doctor's prescription — it's classified as a therapeutic device.

Q: Is a hip protector taxable when sold to a nursing home?
A: Yes — the product is taxable when sold to hospitals, clinics, nursing homes, or other health care providers, even though it's exempt for individual prescription purchases.

Q: Does the exemption require a doctor's prescription?
A: Yes, for individual purchasers — the exemption applies "with a doctor's prescription."

Citations and references

No specific statute or rule section was cited in the available text of this letter.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/200006435L

Original ruling text

June 28, 2000

Dear **:

Thank you for your recent letter concerning the taxability of an under garment
designed for the prevention of hip fractures/injuries. Thank you for providing
the brochure describing the product.

The Safehip hip protector qualifies for exemption as a therapeutic device and
may be purchased tax free by an individual with a doctor's prescription. The
product is taxable when sold to hospitals, clinics, nursing homes and other
health care providers.

The State Tax Automated Research (STAR) system, which provides viewing and
downloading of our rules, the Tax code, edited letter rulings, hearings,
Attorney General Opinions, etc., may be accessed on the Internet at:
http://www.window.state.tx.us/

This opinion is based on the facts you submitted and current law. Other facts
though similar, may result in different answers.

If you have any questions or need more information, I'll be glad to help you.
Please call me toll free at 1.800.531.5441, extension 5.0330. My direct line is
512.475.00330. My email address is .

Sincerely,

Bettie Peterson
Tax Policy Division