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Ezel / Tax Rulings / TX
TX 8511L0678D01 Sales and/or Use Tax (State,Local,MTA) 1985-11-04

When were oxygen-therapy cylinders, their rentals, and prescribed oxygen exempt from Texas sales tax?

Short answer: Prescribed therapy cylinders and oxygen were exempt for individuals; resale and oxygen-connected rentals could be exempt, but empty-cylinder purchasers owed tax.

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This page answers the general question as of 1985. Ezel answers yours, under current Texas tax law, with citations.

Currency note: this ruling is from 1985
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is an official 1985 Texas Comptroller taxpayer-response letter based on cylinders specifically designed for oxygen therapy, individual purchasers with physician prescriptions, resale transactions, refillable-cylinder rentals tied to oxygen sales, and businesses acquiring empty cylinders to fill and sell the contents. It expressly says different facts could change the opinion. Current medical-device, prescription, oxygen, cylinder, rental, resale, and sales-tax rules may differ, and STAR documents may no longer represent current policy even when not marked superseded. Letters on STAR can support detrimental reliance only for the taxpayer to whom the letter was directly issued under 34 Tex. Admin. Code Rules 3.1 and 3.10. Taxpayer-identifying details are redacted. This summary is informational only and is not legal or tax advice.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page) is the authoritative source for any reliance.

Plain-English summary

An oxygen cylinder specifically designed for oxygen therapy was a therapeutic appliance or device. Its sale to an individual under a doctor's prescription was exempt whether the cylinder was sold with or without oxygen.

A cylinder sold for resale was exempt when the seller obtained a resale certificate. Renting or leasing a refillable cylinder in connection with selling the oxygen was also nontaxable.

The person who bought or rented empty refillable cylinders, filled them, and sold the contents owed tax on the cylinders. Oxygen sold to an individual under a doctor's prescription was nontaxable.

Common questions

Was a prescribed therapy cylinder taxable? No.

Did it matter whether oxygen was already in the cylinder? No.

Was a refillable cylinder rental taxable when tied to an oxygen sale? No.

Who owed tax on empty cylinders? The person acquiring them empty to fill and sell the contents.

Citations and references

The reproduced letter cites no numbered statute or rule.

Source

Original ruling text

November 4, 1985

Dear ***:

Thank you for your letter of October 16, 1985, concerning the taxability
of oxygen cylinders used as oxygen therapy equipment.

An oxygen cylinder specifically designed for oxygen therapy is considered
to be a therapeutic appliance or device. Sales tax is not due on the sale
of the oxygen cylinder, whether sold with or without oxygen, when sold to an
individual under a doctor's prescription.

Sales tax is not due on oxygen cylinders sold for the purpose of resale
if a resale certificate is obtained from the purchaser.

The rental or lease of a refillable oxygen cylinder is not taxable when
rented or leased in connection with the sale of the oxygen. However, the
refillable cylinders are taxable at the time of purchase to the person who
purchases or rents them empty, fills them, and sells the contents. The charge
for the oxygen would not be taxable if the oxygen is sold to an individual
under a doctor's prescription.

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

If you have any questions or need more information, please call us at
1-800-252-5555 toll free from anywhere in Texas. You may write us at the
Tax Administration Division.

Sincerely,

Tax Policy Section
Tax Administration Division

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