Nursing and Convalescent Homes

37.1. Persons who operate nursing or convalescent homes may be rendering personal services which are not subject to consumers sales and service tax. If such persons make sales of tangible personal property unrelated to their personal services and are strictly for the convenience of the patients, such as, toilet articles, etc., such sales are subject to tax. Also, meals served to residents of the home, if separately billed or invoiced, are subject to tax. A nursing or convalescent home may provide other services which are subject to tax; such services are other than personal services and should be separately billed or invoiced. See Section 8.1.2 of these regulations.

37.2. Purchases of tangible personal property and services for use or consumption in the operation of such homes are subject to the consumers sales and service tax and use tax. However, any item purchased for resale, on which tax is collected on the sale to the patient, may be purchased by such homes without imposition of tax. Purchases by a nursing or convalescent home of tangible personal property or taxable services which are used or consumed in dispensing a taxable service are taxable.