8093988, 12A-1.002 - Florida Administrative Rules, Law, Code, Register

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Florida Department of State and Division of Library and Information Services

Notice: 8093988

Notice of Development of Rulemaking

Department:

DEPARTMENT OF REVENUE

Division:

Sales and Use Tax, Surtax, Surcharge, and Fees; Communications Services Tax

Chapter:

SALES AND USE TAX

Overview

RULE:

12A-1.002	Practitioners of the Healing Arts (Repealed)
12A-1.015	Industrial Gases (Repealed)
12A-1.020	Licensed Practitioners; Drugs, Medical Products and Supplies
12A-1.021	Prosthetic and Orthopedic Appliances
12A-1.0215	Veterinary Sales and Services
12A-1.097	Public Use Forms

PURPOSE:

The purpose of the proposed repeal of Rule 12A-1.002, F.A.C. (Practitioners of the Healing Arts), is to remove provisions that will be rendered unnecessary with the adoption of the proposed substantial rewording of Rule 12A-1.020, F.A.C., and the proposed creation of Rule 12A-1.0215, F.A.C. Provisions applicable to practitioners of the healing arts are included in those proposed rules.
The purpose of the proposed repeal of Rule 12A-1.015, F.A.C. (Industrial Gases), is to remove provisions regarding the application of tax to certain gases that are redundant of other administrative rules. Provisions for compressed medical gases and medical oxygen are included in the proposed amendments to Rule 12A-1.020, F.A.C., and the creation of Rule 12A-1.0215, F.A.C.
The purpose of the proposed substantial rewording of Rule 12A-1.020, F.A.C. (Licensed Practitioners; Drugs, Medical Products and Supplies), is to clarify the application of tax to items sold to hospitals, healthcare entities, physicians, dentists, and other licensed practitioners for use in their practice of medicine and clarify the exemption for drugs, medicinal supplies, and medical products, supplies, and devices. These rule amendments, when adopted, will provide: (1) a definition of the terms “licensed practitioner” and “drug or medicinal drug” for purposes of the rule; (2) that hospitals, healthcare entities, and licensed practitioners are required to pay tax on taxable items or services consumed in providing medical services; (3) the exemption for prescription drugs and medical gases and opaque drugs; (4) the exemption for common household remedies recommended and generally sold for internal or external use in the cure, mitigation, treatment, or prevention of illness or disease in human beings and the taxability of cosmetics, toilet articles, and hygiene products; (5) that, unless specifically exempt, medical products, supplies, and devices are subject to tax; (6) that medical products, supplies, or devices are exempt when dispensed pursuant to a written prescription; (7) that medical products, supplies, or devices bearing the prescription labeling required under federal or state law are exempt when intended to be used one time only; (8) the exemption for medical products, supplies, or devices that are temporarily or permanently incorporated into a patient; (9) that medical trays required by federal or state law to be dispensed only by prescription and that are intended to be used one time only are exempt from tax; (10) a suggested exemption certificate to be used to purchase tax-exempt medical products, supplies, or devices; (11) the taxability of chemical compounds and test kits, including a list of tax-exempt and a list of taxable chemical compounds and test kits; (13) the exemption for parts or other items added to tangible personal property so that a handicapped person may use an item; (14) the exemption for orthopedic or corrective shoes; (15) the taxability of eyeglasses and lenses; (16) the exemption for stock lenses and a suggested exemption certificate to buy certain stock lenses tax-exempt; and (17) recordkeeping requirements.
The purpose of the proposed amendments to Rule 12A-1.021, F.A.C. (Prosthetic and Orthopedic Appliances), is to: (1) update the term “duly licensed physician” to physician licensed under Chapter 458, Chapter 459, Chapter 460, Chapter 461, or Chapter 466, F.S.; (2) update the list of tax-exempt prosthetic and orthopedic appliances and to remove items that are specifically exempt under Section 212.08(2), F.S.; (3) provide that materials and supplies that are incorporated into and become a component part of a prosthetic or orthopedic appliance or device dispensed by a licensed prosthetist or orthotist pursuant to a prescription written by a licensed practitioner are not subject to sales or use tax; (4) provide that expendable materials and supplies used for such purposes are subject to tax; (5) provide a suggested exemption certificate to buy such materials and supplies tax-exempt; (6) provide the recordkeeping requirements for such exemption certificates; and (7) remove provisions for the exemption provided in Section 212.08(2)(j), F.S., for prescribed parts and attachments added to tangible personal property to assist a person with special needs that are provided in Rule 12A-1.020, F.A.C., as amended.
The purpose of the proposed creation of Rule 12A-1.0215, F.A.C. (Veterinary Sales and Services), is to provide for the taxability of veterinary services, for the taxability of items used in the practice of veterinary medicine, for the exemptions provided for substances possessing curative or remedial properties, and for the taxability of medical products, supplies, and devices used in the treatment of animals. The proposed new rule, when adopted, will provide: (1) that professional services provided by veterinarians are not subject to tax; (2) that charges for hospitalization of animals are not subject to tax; (3) that charges for boarding and grooming are not subject to tax, but items consumed in providing those services are subject to tax; (4) that prescription drugs, medical gases, and opaque drugs are exempt when required by federal or state law to be dispensed by prescription only; (5) for the taxability of items used by veterinarians for treatment of animals and a list of items that are specifically exempt when purchased by veterinarians; (6) that medical products, supplies, or devices bearing the prescription labeling required under federal law are exempt when intended to be used one time only; (7) that medical products, supplies, or devices that are temporarily or permanently incorporated into an animal are exempt; (8) that medical trays required by federal or state law to be dispensed only by prescription and that are intended to be used one time only are exempt from tax; (9) when commonly recognized substances possessing curative or remedial properties purchased by veterinarians are exempt; (10) a suggested exemption certificate to be used to purchase tax-exempt substances and medical products, supplies, or devices; (11) how to purchase items tax-exempt for purposes of resale to clients; and (12) recordkeeping requirements.
The purpose of the proposed amendments to Rule 12A-1.097, F.A.C., is to adopt, by reference, changes to Form DR-46NT, Nontaxable Medical and General Grocery List, to include updated lists of tax-exempt common household remedies and tax-exempt prosthetic and orthopedic appliances.

SUBJECT:

The subject of this workshop is the proposed changes to Rule Chapter 12A-1, F.A.C. (Sales and Use Tax), regarding: (1) the application of tax to items sold to hospitals, healthcare entities, physicians, dentists, and other licensed practitioners for use in their practice of medicine and the taxability of chemical compounds and test kits, common household remedies, drugs, eyeglasses and lenses, medical gases, medical products, supplies, and devices, and prosthetic and orthopedic appliances; and (2) the application of tax to items used in the practice of veterinary medicine, including medical products, supplies, and devices, and substances possessing curative or remedial properties used in the treatment of animals.

RULEMAKING AUTHORITY:

212.17(6), 212.18(2), (3), 213.06(1) FS.

LAW:

92.525(1)(b), (3), 95.091, 212.02(14), (19), 212.05, 212.06, 212.07(1), 212.08(2), 212.085, 212.13, 212.18(2), (3), 213.37, 465.186, 465.187 FS.

PRINT PUBLISH DATE:

12/31/2009 Vol. 35/52

RELATED STATUTES
AND LAWS:

212.17(6), 212.18(2), (3), 213.06(1) FS., 92.525(1)(b), (3), 95.091, 212.02(14), (19), 212.05, 212.06, 212.07(1), 212.08(2), 212.085, 212.13, 212.18(2), (3), 213.37, 465.186, 465.187 FS.

OVERSIGHT COMMITTEE:

Joint Administrative Procedures Committee
Florida Administrative Law Central Online Network (F.A.L.C.O.N.)

RELATED COURT CASES:

Division of Administrative Hearings

FEDERAL eRULEMAKING
WEB PORTAL:

Regulations.gov

HOW TO LINK TO
THIS NOTICE:

http://flrules.org/gateway/ruleno.asp?id=12A-1.002&PDate=12/31/2009&Section=1

REFERENCE MATERIALS:

No reference(s).

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