IDAPA 35.01.02.100 — PRESCRIPTIONS (RULE 100)

Sections 63-3612, 63-3613, 63-3622, 63-3622N, Idaho Code
01.
In General. Sales tax does not apply to sales of drugs, oxygen, orthopedic appliances, orthodontic
appliances, dental prostheses including crowns, bridges, inlays, overlays, prosthetic devices, durable medical
equipment, eyeglasses, contact lenses, and certain other medical equipment and supplies specifically named in
Section 63-3622N, Idaho Code, when:
(3-31-22)
a.
Purchased by a practitioner to be administered or distributed to his patients if such practitioner is
licensed by the state under Title 54, Idaho Code, to administer or distribute such items, or when;
(3-31-22)
b.
Purchased by or on behalf of an individual under a prescription or work order issued by a
practitioner who is licensed by the state to practice one of the following professions: physician, physician assistant,
surgeon, podiatrist, chiropractor, dentist, optometrist, psychologist, ophthalmologist, nurse practitioner, denturist,
orthodontist, audiologist, or hearing aid dealer or fitter. Items purchased under the prescription or work order of a
person who is not a health care practitioner specifically named in Section 63-3622N(b), Idaho Code, will not qualify
for the exemption.
(3-31-22)
c.
Example: A physician issues a prescription for a wheelchair to a nursing home patient. The nursing
home delivers the prescription to a wheelchair retailer and purchases the wheelchair on behalf of the patient. No tax
applies.
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d.
Example: A nursing home purchases wheelchairs for general use in its facility. Since the
wheelchairs are not purchased under prescription for a specific patient, sales tax applies.
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02.
Orthopedic Appliances. The term orthopedic appliance includes those braces and other external
supports prescribed by a practitioner for the purpose of correction or relief of defects, diseases, or injuries to bones or
joints.
(3-31-22)
03.
Documenting Exempt Sales. The seller keeps the written prescription or work order on file to
document the exemption. Sales made without a prescription or work order are taxable. The seller needs to be able to
identify sales which are exempt under prescription from sales which are taxable.
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a.
Refills of prescriptions on file with a seller are exempt from tax.
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b.
Some drugs may be lawfully sold without a prescription. When sold over the counter without a
prescription, the drugs are subject to sales tax. When sold under a prescription, the drugs are exempt from tax.
(3-31-22)
IDAHO ADMINISTRATIVE CODE
IDAPA 35.01.02
State Tax Commission
Idaho Sales & Use Tax Administrative Rules
Section 101
Page 91
04.
Purchases by Practitioners. A practitioner, who is licensed under Title 54, Idaho Code, to
administer or distribute a medical product listed in Section 63-3622N, Idaho Code, may purchase the item exempt
from tax by issuing his supplier an exemption certificate required by Rule 128 of these rules. Only the medical items
named in Section 63-3622N, Idaho Code, which the practitioner is licensed to administer or distribute qualify for this
exemption.
(3-31-22)
05.
Purchases by Nursing Homes and For Profit Hospitals. The Sales Tax Act does not provide a
general exemption from tax for purchases made by nursing homes and similar facilities or by hospitals operated for
profit, and as a result, they pay tax on all purchases, unless those items are exempted by Section 63-3622N, Idaho
Code. An exemption certificate is completed and provided to the vendor of the exempted items. See Rule 128 of these
rules.
(3-31-22)
06.
Sale of Eyeglasses, Contact Lenses, and Related Products. The sale of non-prescription
eyeglasses, non-prescription contact lenses and related products, such as carrying cases, non-prescription sunglasses,
and cleaning solutions is taxable.
(3-31-22)
a.
The sale of eyeglasses and their frames, lenses, nose pieces, hinges, and related eyeglass
component parts required as part of a finished pair of eyeglasses sold under a prescription is exempt from sales tax on
and after July 1, 2015.
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b.
The sale of prescription contact lenses on and after July 1, 2016, is exempt from sales tax.
(3-31-22)
07.
Dental and Orthodontic Appliances. The sale or purchase of dentures, partial plates, dental
bridgework, orthodontic appliances, and related parts for such items by a dentist, denturist, orthodontist or other
practitioner is not a taxable sale.
(3-31-22)