Exemptions from tax — Durable medical equipment, mobility-enhancing equipment, prosthetic devices, and disposable medical supplies

(a) The gross receipts or gross proceeds derived from the rental, sale, or repair of the following items are exempt from tax if prescribed by a physician:

(1) Durable medical equipment;

(2) Mobility-enhancing equipment;

(3) Disposable medical supplies; or

(4) A prosthetic device.

(b) This exemption shall only apply to durable medical equipment, mobility-enhancing equipment, disposable medical supplies, or a prosthetic device sold to a specific patient pursuant to a prescription written by a physician prior to sale.
(c)(1) Physicians, hospitals, nursing homes, and long-term care facilities are considered consumers of all property and services that they purchase for use in the practice of their professions.

(2) Physicians, hospitals, nursing homes, and long-term care facilities are liable for the sales and use tax on their purchases unless the requirements of this exemption or other applicable exemption are satisfied.
(d)(1) For the purpose of this section, “physician” means a person licensed under Arkansas Code § 17-95-401 et seq., and includes osteopathic physicians (D.O.).

(2) The term “physician” does not include:

(A) Chiropractors;

(B) Podiatrists;

(C) Dentists;

(D) Optometrists; or

(E) Physical therapists.

# (e) Durable medical equipment

(e) Durable medical equipment.

(1) “Durable medical equipment” means equipment, including repair and replacement parts for the equipment, that meets the following conditions:

(A) Can withstand repeated use;

(B) Is primarily and customarily used to serve a medical purpose;

(C) Generally is not useful to a person in the absence of illness or injury;

(D) Is not worn in or on the body; and

(E) Is for home use.

(2) Durable medical equipment does not include mobility-enhancing equipment.

(3) For the purposes of durable medical equipment, repair and replacement parts include all components or attachments used in conjunction with durable medical equipment.

(4) Examples of durable medical equipment include, but are not limited to, the following items:

(A) Respiratory humidifier;

(B) Glucose meters;

(C) Apnea monitors;

(D) Bili lights;

(E) Vaporizers;

(F) Injection guns;

(G) Enteral feeding bags;

(H) Wheelchair cushions; and

(I) Traction equipment.

# (f) Mobility-enhancing equipment

(f) Mobility-enhancing equipment.

(1) “Mobility-enhancing equipment” means equipment, including repair and replacement parts for the equipment, that meets the following conditions:

(A) Is primarily and customarily used to provide or increase the ability to move from one (1) place to another and that is appropriate for use either in a home or a motor vehicle;

(B) Is not generally used by a person with normal mobility; and

(C) Does not include any motor vehicle or equipment on a motor vehicle normally provided by a motor vehicle manufacturer.

(2) “Mobility-enhancing equipment” does not include durable medical equipment.

(3) Examples of mobility-enhancing equipment include, but are not limited to, the following items:

(A) Crutches;

(B) Canes;

(C) Lift chairs;

(D) Transfer belts;

(E) Walkers;

(F) Wheelchair ramps; and

(G) Swivel seats.

# (g) Disposable medical supplies

(g) Disposable medical supplies. Examples of disposable medical supplies include, but are not limited to, the following items:

(1) Ostomy, urostomy, and colostomy supplies;

(2) Enemas, suppositories, and laxatives used in routine bowel care; and

(3) Disposable undergarments and linen savers.

# (h) Prosthetic device

(h) Prosthetic device.

(1) “Prosthetic device” means a replacement, corrective, or supportive device, including repair and replacement parts for the device, worn in or on the body to:

(A) Artificially replace a missing portion of the body;

(B) Prevent or correct physical deformity or malfunction; or

(C) Support a weak or deformed portion of the body.

(2) “Prosthetic device” does not include:

(A) Corrective eyeglasses;

(B) Contact lenses; or

(C) Dental prostheses.

(3) Examples of prosthetic devices include, but are not limited to, the following items:

(A) Abdominal belts;

(B) Catheters;

(C) Hearing aids;

(D) Artificial limbs;

(E) Insulin pumps;

(F) Mastectomy surgical bras; and

(G) Orthopedic shoes.
(4)(A) Many prosthetic devices cannot be purchased directly by a patient.

(B) A prosthetic device that would be exempt if it could be purchased directly by the patient is exempt if the physician procures the device from the medical supplier on behalf of a specific patient.

(C) A prosthetic device that is purchased for use or consumption in the performance of nontaxable medical services or otherwise not purchased on behalf of a specific patient does not meet the requirements of Arkansas Code § 26-52-433.
(5)(A) The general exemption certificate (Form ST 391) or the multi-state certificate of exemption (SSTGB Form F0003) may be used to claim this exemption on behalf of the patient.

(B) Both forms may be obtained on the Department of Finance and Administration’s website.

(C) Documentation must be maintained to support that the prosthetic device was purchased on behalf of the specific patient pursuant to a prescription.