KRS 139.472 — Exemption for certain medical items

(1) Notwithstanding any other provisions of this chapter, the taxes imposed by this
chapter shall not apply to the sale or purchase of:
(a) A drug purchased for the treatment of a human being for which a prescription
is required by state or federal law, whether the drug is dispensed by a licensed
pharmacist, administered by a physician or other health care provider, or
distributed as a free sample to or from a physician's office;
(b) An over-the-counter drug purchased for the treatment of a human being for
which a prescription is issued;
(c) Medical oxygen and oxygen delivery equipment purchased for home use.
Oxygen delivery equipment includes:
1. High pressure cylinders, cryogenic tanks, oxygen concentrators, or
similar medical oxygen delivery equipment includi ng repair and
replacement parts for the equipment; and
2. Tubes, masks, and similar items required for the delivery of oxygen to
the patient;
(d) Insulin and diabetic supplies, including hypodermic syringes, needles, and
sugar (urine and blood) testing mat erials purchased by an individual for
private use;
(e) Colostomy, urostomy, or ileostomy supplies purchased by an individual for
private use;
(f) Prosthetic devices purchased by any health care provider for use in the
treatment of a specific individual or purchased by an individual as prescribed
by a person authorized under the laws of the Commonwealth to issue
prescriptions;
(g) Prosthetic devices that are individually designed or created for an individual
regardless of the purchaser;
(h) Mobility enhancing equipment for which a prescription is issued; and
(i) Durable medical equipment, including hospital beds for which a prescription
is issued.
(2) Except as specifically provided in subsection (1) of this section, supplies or
equipment used to deliver a drug to a patient are taxable.
(3) As used in this section and KRS 139.480:
(a) "Drug" means a compound, substance, or preparation and any component of a
compound, substance, or preparation, other than food and food ingredients,
dietary supplements, or alcoholic beverages as defined in KRS 139.485, that
is recognized in the official United States Pharmacopoeia, official
Homeopathic Pharmacopoeia of th e United States, or official National
Formulary, or a supplement to any of them, or is:
1. Intended for use in the diagnosis, cure, mitigation, treatment, or
prevention of disease; or
2. Intended to affect the structure or any function of the body;
(b) "Grooming and hygiene products" means soaps and cleaning solutions,
shampoo, toothpaste, mouthwash, antiperspirants, and suntan lotions,
regardless of whether the items meet the definition of an over -the-counter
drug;
(c) 1. "Over-the-counter drug" means a dr ug that contains a label that
identifies the product as a drug as required by 21 C.F.R. sec. 201.66.
The "over-the-counter drug" label shall include:
a. A "Drug Facts" panel; or
b. A statement of the active ingredients with a list of those
ingredients contained in the compound, substance, or preparation.
2. "Over-the-counter drug" shall not include grooming and hygiene
products;
(d) "Prescription" means an order, formula, or recipe issued in any form of oral,
written, electronic, or other means of transmiss ion by a person authorized
under the laws of the Commonwealth to prescribe a drug;
(e) 1. "Prosthetic device" means a replacement, corrective, or supportive
device, including repair and replacement parts for the device, worn on or
in the body to:
a. Artificially replace a missing portion of the body;
b. Prevent or correct a physical deformity or malfunction; or
c. Support a weak or deformed portion of the body.
2. "Prosthetic device" shall not include any of the following:
a. Corrective eyeglasses;
b. Contact lenses; or
c. Dental prosthesis;
(f) 1. "Mobility enhancing equipment" means equipment, including repair and
replacements part for same, which:
a. Is primarily and customarily used to provide or increase the ability
to move from one place to another and which is appropriate for
use either in a home or a motor vehicle;
b. Is not generally used by persons 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" shall not include durable medical
equipment; and
(g) 1. "Durable medical equipment" means equipment, inc luding repair and
replacement parts for same, which:
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; and
d. Is not worn in or on the body.
2. "Durable medical equipment" shall not include mobility enhancing
equipment or oxygen delivery equipment that is not worn in or on the
body.
3. As used in this paragraph, "repair and replacement parts" includes all
components or attachments used i n connection with durable medical
equipment.