Is Resolut Regenerative Material, a product used to treat periodontal disease and bone defects in the oral cavity, exempt from Texas sales tax?

Plain-English summary

A taxpayer wrote to the Texas Comptroller's Tax Policy Division on October 24, 1995, asking about the taxability of a medical product called Resolut Regenerative Material, and provided literature describing the product.

The facts: the product is used to treat periodontal disease and bone defects in the oral cavity, and is designed to assist the body in healing itself. Specifically, "Resolut Regenerative Material - Transgingival Configurations" are used to regenerate the supporting structures of teeth that have been lost to periodontal disease. The product is placed in the oral cavity and remains there until it is absorbed by the body.

The Comptroller's response was short and direct: the product is exempt from sales tax as a prosthetic device, under Rule 3.284(l0) (referenced in the letter as "Rule 3.284(l 0)"). As with all letter rulings, the Comptroller noted that this opinion is based on the facts presented and current law, and that different facts, although similar, may result in different answers.

What this means for you

Sellers and users of dental/periodontal regenerative materials

If you sell or purchase a product like Resolut Regenerative Material — one that is placed in the oral cavity to regenerate tooth-supporting structures lost to periodontal disease and that remains until absorbed by the body — this letter indicates the Comptroller has treated this type of product as an exempt prosthetic device under Rule 3.284. Products with different characteristics or a different use (not regenerating a bodily structure, not implanted/placed until absorbed) may not qualify the same way.

Dental practices and suppliers

Because this ruling turns heavily on the specific facts submitted (the product's design, its function in helping the body heal itself, and how it's used and absorbed), practices or suppliers of similar products should not assume automatic coverage. The letter's own caveat applies: different facts, even if similar, may lead to a different result.

Accountants and tax professionals

This is a short-form letter ruling resting entirely on a prosthetic-device classification under Rule 3.284(l0). It does not analyze other possible exemptions or provide extended reasoning, so if you're advising a client on a similar product, focus on whether the product functions as a prosthetic device (i.e., replacing or regenerating a bodily structure) as the operative test.

Common questions

Q: Is Resolut Regenerative Material taxable in Texas?
A: No. The Comptroller ruled it is exempt from sales tax as a prosthetic device under Rule 3.284(l0).

Q: What is the product used for?
A: It treats periodontal disease and bone defects in the oral cavity and is designed to help the body heal itself. The "Transgingival Configurations" version regenerates the supporting structures of teeth lost to periodontal disease.

Q: How is the product used?
A: It is placed in the oral cavity and remains there until it is absorbed by the body.

Q: Can other taxpayers rely on this letter for their own similar products?
A: Not automatically. The letter states the opinion is based on the facts presented and current law, and that different facts, although similar, may result in different answers. STAR letters generally can be relied on only by the taxpayer to whom they were issued.

Citations and references

Rules:

• 34 Tex. Admin. Code Rule 3.284 (referenced in the letter as "Rule 3.284(l 0)"), governing the taxability of drugs, medicines, and medical/prosthetic devices.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9511L1378D01

Original ruling text

November 2, 1995

Dear *****:

Thank you for your letter dated October 24, 1995, concerning the taxability of
the medical product Resolut Regenerative Material. The literature you provided
that describes the product was most helpful.

Facts: The product is used in the treatment of periodontal disease and bone
defects in the oral cavity. The product is designed to assist the body in
healing itself. Resolut Regenerative Material - Transgingival Configurations
are used to regenerate the supporting structures of teeth that have been lost to
periodontal disease. The product is placed in the oral cavity and remains until
absorbed by the body.

Response: The product is exempt as a prosthetic device. Rule 3.284(l 0).

This opinion is based on the facts presented and current law. Different facts
although similar, may result in different answers.

If you have any questions or need more information, you may call me toll free at
1-800-531-5441, ext. 50330. The direct line is 512/475-0330. You may also write
to Tax Policy Division, Comptroller of Public Accounts.

Sincerely,

Bettie Peterson
Tax Policy Division

NOTE: Previous Accession Number 9511665L