Wis. Admin. Code § Tax 11.45 — Sales by pharmacies and drug stores

Tax 11.45(1) (1) Taxable sales. All sales of tangible personal property and items, property and goods under s. 77.52 (1) (b) , (c) and (d) , Stats., by a pharmacy or drug store are taxable under the general sales tax law unless exempted by a specific statute. The most common exemptions are described and enumerated in this section.

Tax 11.45(2) (2) Drugs and prescription drugs.

Tax 11.45(2)(a) (a) “Drug” is defined in s. 77.51 (3pj) , Stats., to mean a compound, substance, or preparation, or any component of them, other than food and food ingredients, dietary supplements, or alcoholic beverages, to which any of the following applies:

Tax 11.45(2)(a)1. 1. It is listed in the United States Pharmacopoeia, Homeopathic Pharmacopoeia of the United States, or National Formulary, or any supplement to any of them.

Tax 11.45(2)(a)2. 2. It is intended for use in diagnosing, curing, mitigating, treating, or preventing a disease.

Tax 11.45(2)(a)3. 3. It is intended to affect a function or structure of the body.

Tax 11.45(2)(b) (b) Drugs are exempt from the tax if prescribed by a licensed physician, surgeon, podiatrist or dentist to a patient, who is a human being, for treatment and dispensed on prescription filled by a registered pharmacist in accordance with law.

Tax 11.45(2)(c) (c) Drugs described in par. (b) which are exempt from the tax include:

Tax 11.45(2)(c)1. 1. Pills and capsules.

Tax 11.45(2)(c)2. 2. Powders.

Tax 11.45(2)(c)3. 3. Liquids, including sterile water and irrigation solutions.

Tax 11.45(2)(c)4. 4. Salves and ointments.

Tax 11.45(2)(c)5. 5. Insulin.

Tax 11.45(2)(c)6. 6. Other preparations consumed orally, injected or applied, including dermal fillers.

Tax 11.45(2)(c)7. 7. Parenteral nutrition formulas.

Tax 11.45(2)(c)8. 8. Enteral nutrition formulas that contain a drug facts box.

Tax 11.45(2)(c)9. 9. Suppositories.

Tax 11.45(2)(c)10. 10. Radioactive isotopes such as implanted seeds.

Tax 11.45(2)(c)11. 11. Dyes and other contrast media.

Tax 11.45(2)(c)12. 12. Other items which remain or dissolve in the body, such as birth control implants including intra-uterine devices (IUD).

Tax 11.45(2)(c)13. 13. Gases - medical grade, such as oxygen and nitrous oxide.

Tax 11.45(2)(c)14. 14. Vitamins.

Tax 11.45(2)(c)15. 15. Vaccines.

Tax 11.45(2)(c)16. 16. Oral contraceptives.

Tax 11.45(2)(c)17. 17. Medicated dressings.

Tax 11.45(2)(d) (d) This exemption does not include:

Tax 11.45(2)(d)1. 1. Prosthetic devices, mobility-enhancing equipment, or durable medical equipment.

Tax 11.45(2)(d)2. 2. Non-medicated bandages, pads, compresses, supports, or dressings.

Tax 11.45(2)(d)3. 3. Alcoholic beverages.

Tax 11.45(2)(d)4. 4. Casts and casting materials.

Tax 11.45(2)(d)5. 5. Food and food ingredients, including dietary supplements and soft drinks.

Tax 11.45(3) (3) Prosthetic devices. The exemption for prosthetic devices under s. 77.54 (22b) , Stats., applies to sales of all prosthetic devices, including repair and replacement parts, that are used for a human being. The exemption also includes accessories for exempt prosthetic devices.

Tax 11.45(3)(a) (a) “Prosthetic device” is defined in s. 77.51 (11m) , Stats., to mean a replacement, corrective, or supportive device, including the repair parts and replacement parts for the device, that is placed in or worn on the body to artificially replace a missing portion of the body; to prevent or correct a physical deformity or malfunction; or to support a weak or deformed portion of the body.

Tax 11.45(3)(b) (b) “Prosthetic devices” include the following items, as well as repair and replacement parts and accessories for those items, if they are implanted or worn on the body:

Tax 11.45(3)(b)1. 1. Trusses; post-operative shoes; orthopedic shoes, shoe lifts, inserts, arch supports, and heel protectors; braces including ankle, knee, neck, and back braces; knee immobilizers; traction devices; cervical collars; head halters; abdominal belts, binders, and supports; slings; suspensories; and bone pins, plates, nails, screws, wax, and cement.

Tax 11.45(3)(b)2. 2. Antiembolism elastic hose and stockings, and compression stockings and sleeves.

Tax 11.45(3)(b)3. 3. Pressure garments, including edema gloves, mast pants, and burn garments.

Tax 11.45(3)(b)4. 4. Artificial limbs; skin, shoulder, elbow, tendon, testicular, penile, hip, and knee implants and acetabular cups for hip implants; neuro, spinal, and joint membranes implants; adhesion barriers; artificial eyes; ocular, orbital, ear, nose, and throat implants; cochlear implants; maxillofacial devices; hands and feet implants; orthobiologics implants; surgical mesh implants; vena cava filters; artificial heart valves; artificial larynx; trachea tubes; grafts; sphincters; stump shrinkers; gastric bands and intragastric balloons; nasogastric tubes; stents; pacemakers and leads that are implanted or worn; defibrillator and leads that are implanted; and hearing aids and batteries.

Tax 11.45(3)(b)5. 5. Contact lenses and corrective eyeglasses (prescription and non-prescription).

Tax 11.45(3)(b)6. 6. Ostomy adhesives, barriers, catheters, collection bags and pouches, drain tubes, stoma caps, tubing, belts, hernia belts, and valves, but not barrier prep wipes, barrier powder, or lubricants.

Tax 11.45(3)(b)7. 7. Feeding, drainage, urinary and dialysis catheters, access ports, drains, and shunts.

Tax 11.45(3)(b)8. 8. Collagen implants, implanted tissue expanders, breast implants and prosthesis, and mastectomy surgical bras.

Tax 11.45(3)(b)9. 9. Casts and casting materials, splint and splint materials, staples, sutures, and suture alternatives.

Tax 11.45(3)(b)10. 10. Bone growth stimulators, CPAP machines, infuser pumps, programmable drug infusion devices, insulin pumps, penile pumps, electronic speech aids and tracheostomy speaking valves, tens units, and nerve stimulators implanted with leads.

Tax 11.45(4) (4) Mobility-enhancing equipment. The exemption for mobility-enhancing equipment under s. 77.54 (22b) , Stats., applies to all mobility-enhancing equipment, including repair and replacement parts, that is for human use. The exemption also includes accessories for exempt mobility-enhancing equipment.

Tax 11.45(4)(a) (a) “Mobility-enhancing equipment” is defined in s. 77.51 (7m) , Stats., to mean equipment, including the repair parts and replacement parts for the equipment, that is primarily and customarily used to provide or increase the ability of a person to move from one place to another; that may be used in a home or motor vehicle; and that is generally not used by a person who has normal mobility. “Mobility-enhancing equipment” does not include a motor vehicle or any equipment on a motor vehicle that is generally provided by a motor vehicle manufacturer. “Mobility-enhancing equipment” does not include durable medical equipment.

Tax 11.45(4)(b) (b) “Mobility-enhancing equipment” includes the following items, as well as repair and replacement parts and accessories for those items:

Tax 11.45(4)(b)1. 1. Raised toilet seats and tub and shower stools.

Tax 11.45(4)(b)2. 2. Canes, crutches, walkers, wheelchairs including motorized wheelchairs and scooters, specialty chairs such as all terrain wheelchairs and pool wheelchairs, and wheelchair ramps.

Tax 11.45(4)(b)3. 3. Swivel seats which enable a disabled person to rotate his or her body, while seated, in order to get into position to rise from a chair.

Tax 11.45(4)(b)4. 4. Handrails and grab bars to assist in rising from the commode, tub, or shower.

Tax 11.45(4)(b)5. 5. Lift chairs, patient lifts, bed pull-ups including trapeze bars, and transfer belts and benches.

Tax 11.45(4)(b)6. 6. Mobility enhancing car seats which are car seats that provide restraint and support (five point harness) for disabled children who have outgrown standard size child car seats but still need the restraint and support provided by car seats.

Tax 11.45(5) (5) Durable Medical equipment. The exemption for durable medical equipment under s. 77.54 (22b) , Stats., applies to all durable medical equipment, including repair and replacement parts, that is for use in a person’s home, if the equipment is used for a human being. The exemption also includes accessories for exempt durable medical equipment.

Tax 11.45(5)(a) (a) “Durable medical equipment” is defined in s. 77.51 (3pm) , Stats., to mean equipment, including the repair parts and replacement parts for the equipment that is primarily and customarily used for a medical purpose related to a person; that can withstand repeated use; that is not generally useful to a person who is not ill or injured; and that is not placed in or worn on the body. “Durable medical equipment” does not include mobility-enhancing equipment.

Tax 11.45(5)(b) (b)

Tax 11.45(5)(b)1. 1. “Use in a person’s home” means that the equipment is sold to an individual for use where they are living, regardless of whether the individual resides in a single family home, apartment building, nursing home, assisted living center, convalescent home or school dormitory.

Tax 11.45(5)(b)2. 2. Durable medical equipment is not for use in a person’s home if it is purchased by a hospital, clinic, nursing home, assisted living center, convalescent home, dental office, chiropractor or optician’s office. In addition, purchases of durable medical equipment by a nursing home, assisted living center and convalescent home are not for use in a person’s home even if the equipment is purchased for use by the residents of the nursing home, assisted living center or convalescent home.