When were repairs to medical and therapeutic equipment exempt from Texas sales tax, and when was a prescription required?

Plain-English summary

Repair, maintenance, remodeling, and restoration services were exempt when the property itself would be exempt because of its nature, use, or both.

Repairs to wheelchairs, walkers, and IPPB machines were exempt because of the item's nature. Repairs to oxygen regulators, blood-pressure instruments, suction equipment, ultrasonic nebulizers, whirlpool baths, and exercise equipment were exempt when the item qualified as a therapeutic device used under a licensed practitioner's prescription.

The original vendor did not need a separate repair prescription if it had the original prescription on file. Otherwise, a repair prescription was required.

What this means for you

The exemption depended either on the equipment's inherent nature or on prescribed therapeutic use, with records supporting the latter.

Common questions

Q: Were wheelchair repairs exempt? A: Yes.

Q: Did therapeutic equipment require a prescription? A: Yes, under the conditions stated in the letter.

Q: When was a new repair prescription unnecessary? A: When the original vendor retained the original prescription.

Citations and references

The letter does not identify the exemption statute by number.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/8408L0585E11

Original ruling text

August 31, 1984

Dear ***:

Thank you for your questions concerning the taxability of repair services
on medical equipment.

The law does provide an exemption from the tax on repair, maintenance,
remodeling and restoration services to property that would be exempted when
sold because of the nature of the property, its use or a combination of its
nature and use.

Repairs to wheelchairs, walkers and IPPB machines are exempt because of
the nature of the item. Repairs to oxygen regulators, blood pressure
instruments, suction equipment, ultrasonic nebulizers, whirlpool baths, and
exercise equipment that qualify as therapeutic appliances or devices would be
exempt if the item is used by an individual under a prescription of a licensed
practitioner of the healing arts. If the repairs are performed by the original
vendor who has the original prescription on file, a separate prescription for
the repair would not be required. Otherwise a prescription for the repair is
needed.

This opinion is based upon the facts you presented. If there are
additional or different facts, this opinion may change.

Please feel free to contact me if you have additional questions. You may
write me, call toll free 1-800-252-5555 from anywhere in Texas or phone
512/475-1931.

Sincerely,

Tom Soto
Tax Policy Section
Tax Administration Division