8490427, 12A-1.002 - Florida Administrative Rules, Law, Code, Register

Home

Florida Department of State and Division of Library and Information Services

Notice: 8490427

Notice of Proposed Rule

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12A-1.002	Practitioners of the Healing Arts (Repealed)
12A-1.015	Industrial Gases (Repealed)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 changes to Rule Chapter 12A-1, F.A.C. (Sales and Use Tax), is to update, consistent with current statutory provisions, the application of tax to drugs, medicines, and medical products, supplies, and devices used in the treatment of human disease, illness, or injury, and in the treatment of animals.
When adopted, the proposed substantial rewording of Rule 12A-1.020, F.A.C. (Licensed Practitioners; Drugs, Medical Products and Supplies), will provide for the administration of sales tax for the following items used to treat human disease, illness, or injury:
•Drugs, medical products, supplies, or devices
•Common household remedies
•Cosmetics, toilet articles, and hygiene products
•Chemical compounds and test kits
•Eyeglasses and lenses
•Orthopedic, therapeutic, or corrective shoes
•Prescribed parts and attachments to assist a person with special needs
When adopted, the proposed amendments to Rule 12A-1.021, F.A.C. (Prosthetic and Orthopedic Appliances), will update the list of tax-exempt prosthetic or orthopedic appliances and provide how to purchase materials and supplies that will be incorporated into tax-exempt prosthetic or orthopedic appliances without paying tax at the time of purchase.
When adopted, proposed new Rule 12A-1.0215, F.A.C. (Veterinary Sales and Services), will provide for 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.
When adopted, the proposed amendments to Rule 12A-1.097, F.A.C. (Public Use Forms), will adopt, by reference, changes to Form DR-46NT, Nontaxable Medical and General Grocery List, necessary to reflect the provisions of substantially reworded Rule 12A-1.020, F.A.C., revised Rule 12A-1.021, F.A.C., and new Rule 12A-1.0215, F.A.C.

SUMMARY:

The proposed repeal of Rule 12A-1.002, F.A.C. (Practitioners of the Healing Arts), removes provisions regarding licensed practitioners that are included in the proposed substantial rewording of Rule 12A-1.020, F.A.C., or in proposed new Rule 12A-1.0215, F.A.C.
The proposed repeal of Rule 12A-1.015, F.A.C. (Industrial Gases), removes the 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 substantial rewording of Rule 12A-1.020, F.A.C., and proposed new Rule 12A-1.0215, F.A.C.
The proposed substantial rewording of Rule 12A-1.020, F.A.C.: (1) updates the title of the rule to “Licensed Practitioners”; Drugs, Medical Products and Supplies); (2) defines the terms “licensed practitioner” and “drug or medicinal drug” for purposes of the rule; (3) provides that hospitals, healthcare entities, and licensed practitioners are required to pay tax on taxable items or services consumed in providing medical services; (4) provides for the exemption for prescription drugs and medical gases and opaque drugs; (5) provides for 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; (6) provides that, unless specifically exempt, medical products, supplies, and devices are subject to tax; (7) provides that medical products, supplies, or devices are exempt when dispensed pursuant to a written prescription; (8) provides that medical products, supplies, or devices bearing the prescription labeling required under federal or state law and that are intended to be used one time only are not subject to tax; (9) provides for the exemption for medical products, supplies, or devices that are temporarily or permanently incorporated into a patient; (10) provides 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 not subject to tax; (11) provides a suggested exemption certificate to be used to purchase non-taxable medical products, supplies, or devices; (12) provides for the taxability of chemical compounds and test kits, including a list of taxable and a list of nontaxable chemical compounds and test kits; (13) provides for the exemption for parts or other items added to tangible personal property so that a handicapped person may use an item; (14) provides for the exemption for orthopedic or corrective shoes, eyeglasses, lenses, and stock lenses; (15) provides a suggested exemption certificate to buy certain stock lenses without paying tax at the time of purchase; and (16) provides the recordkeeping requirements for the sale or purchase of medical products, supplies, and devices.
The proposed amendments to Rule 12A-1.021, F.A.C. (Prosthetic and Orthopedic Appliances): (1) clarify that the term “duly licensed practitioner” includes physicians, osteopathic physicians, chiropractic physicians, podiatric physicians, or dentists duly licensed under Florida law; (2) update the list of prosthetic and orthopedic appliances to include only those items that are specifically exempt under Section 212.08(2), F.S., or are certified by the Department of Health as tax-exempt prosthetic or orthopedic appliances, as required in Section 212.08(2)(b)1., 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 be extended to the seller when purchasing such materials and supplies and when the exemption certificate is required; (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 will be provided in Rule 12A-1.020, F.A.C., as substantially revised.
The proposed creation of Rule 12A-1.0215, F.A.C. (Veterinary Sales and Services), provides: (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 not subject to tax 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 that are intended to be used one time only are not subject to tax; (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 not subject to tax; (9) when commonly recognized substances possessing curative or remedial properties purchased by veterinarians are exempt; (10) a suggested exemption certificate to be extended to the seller to purchase items exempt from tax; (11) how to purchase items for purposes of resale to clients without paying tax at the time of purchase; and (12) recordkeeping requirements for veterinarians.
The proposed amendments to Rule 12A-1.097, F.A.C. (Public Use Forms), adopt, by reference, changes to Form DR-46NT, Nontaxable Medical and General Grocery List, to include updated lists of chemical compounds, test kits, common household remedies, prosthetic and orthopedic appliances, optical goods, other medical items, general grocery items, bakery products, seeds, and fertilizers that provide information on whether the item is subject to tax.

RULEMAKING AUTHORITY:

212.17(6), 212.18(2), 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:

4/9/2010 Vol. 36/14

COMMENTS:

From 4/9/2010 To 4/30/2010 (21 Days)
The public comment period for this notice has already expired.

REFERENCE MATERIALS:

No reference(s).

Under Florida law, E-mail addresses are public records. If you do not want your E-mail address released in response to a public records request, do not send electronic mail to this entity. Instead, contact this office by phone or in writing.