Sales and Use Tax – TAA 16A-001 – Medical, Prosthetic and Orthopedic Appliances

Question: Are the sales of taxpayer’s homeopathic remedies (Listed and described in exhibit a) Subject to Florida's sales tax?

Answer: The sale of taxpayer’s homeopathic remedies which are recommended and generally sold for internal or external use in the cure, mitigation, treatment, or prevention of illness or disease in human beings according to form dr-46NT are not subject to Florida sales tax.

January 15, 2016

Re: Technical Assistance Advisement - TAA 16A-001 Florida Sales and Use Tax XXXX – Homeopathic remedies. 

Section: 212.08, Florida Statutes (F.S.) Rule: 12A-1.020, Florida Administrative Code (F.A.C.) 

Petitioner: XXXX (“Taxpayer”) 

BP#: XXXX 

FEI#: XXXX 

SAP Certificate Number: XXXX 

Dear XXXX:

This letter is a response to Taxpayer’s petition for the Department's issuance of a Technical Assistance Advisement ("TAA") concerning the above referenced petitioner and matter. This petition has been carefully examined and the Department finds it to be in compliance with the requisite criteria set forth in Chapter 12-11, F.A.C. This response to Taxpayer’s request constitutes a TAA and is issued to Taxpayer under the authority of section 213.22, F.S. 

Facts 

Taxpayer specializes in the development and manufacture of homeopathic remedies (“Remedies”). Taxpayer states that its Remedies are derived from natural sources such as vegetables, minerals, or even animals (e.g., honey). Taxpayer asserts that its Remedies are regulated as drugs by the Food and Drug Administration (FDA) and are labeled for specific indications. Taxpayer states that its Remedies comply with drug Good Manufacturing Practices (GMPs) and the Homeopathic Pharmacopoeia of the United States (HPUS). Taxpayer’s Remedies are available for purchase over-the-counter at many large, retail establishments and natural food stores, and over the Internet. None of the Remedies under advisement are prescribed. Taxpayer is a publicly traded pharmaceutical company with distribution in 59 countries. 

Taxpayer is registered to collect and remit Florida sales and use tax (SAP Certificate Number –XXXX) 

Taxpayer seeks advice on the taxability of sales of its Remedies in Florida. 

Taxpayer provided an Excel spreadsheet, which provided the names, uses, directions, ingredients, and sizes/types for each of the Remedies under advisement (See Exhibit A). 

Requested Advisements 

Are Taxpayer’s Florida sales of Remedies listed and described in Exhibit A subject to Florida sales tax? 

Taxpayer’s Position 

Taxpayer believes that its Florida sales of Remedies are exempt from Florida sales tax under the provision of s. 212.08(2)(a), F.S., except for the following: XXXX, XXXX, XXXX, XXXX, XXXX, XXXX, XXXX XXXX, XXXX, XXXX XXXX, XXXX, XXXX XXXX, XXXX XXXX, XXXX, and XXXX. 

Applicable Law and Discussion 

The website (www.webmd.com/balance/guide/homeopathy-topic-overview) provides the following information regarding homeopathy: 

Homeopathy, or homeopathic medicine, is a medical philosophy and practice based on the idea that the body has the ability to heal itself. Homeopathy was founded in the late 1700s in Germany and has been widely practiced throughout Europe. Homeopathic medicine views symptoms of illness as normal responses of the body as it attempts to regain health.

Homeopathy is based on the idea that "like cures like." That is, if a substance causes a symptom in a healthy person, giving the person a very small amount of the same substance may cure the illness. In theory, a homeopathic dose enhances the body's normal healing and self-regulatory processes.

A homeopathic health practitioner (homeopath) uses pills or liquid mixtures (solutions) containing only a little of an active ingredient (usually a plant or mineral) for treatment of disease. . . . The National Center for Homeopathy’s website (www.nationalcenterforhomeopathy.org/learnabout- homeopathy) defines the term “homeopathic remedies” as medicines made from natural sources (e.g., plants, minerals) which are used to treat acute illnesses as well as chronic conditions. Unless a specific exemption applies, s. 212.05, F.S., provides it is the legislative intent that every person is exercising a taxable privilege that engages in the business of selling tangible personal property at retail in this state. For exercising such a privilege, a tax is levied on each taxable transaction or incident. The tax is due and payable at the rate of 6 percent, plus any applicable surtaxes imposed under s. 212.055, F.S., on the total consideration received for each item or article of tangible personal property when sold at retail in this state. Section 212.08(2)(a), F.S., provides an exemption for common household remedies recommended and generally sold for internal or external use in the cure, mitigation, treatment, or prevention of illness or disease in human beings according to a list prescribed and approved by the Department of Business and Professional Regulation, referred to as Form DR-46NT, Nontaxable Medical and General Grocery List. Form DR-46NT, provides, under Common Household Remedies, that the following are exempt from sales tax: antacids; analgesics; pain relievers, oral or topical; rectal preparations (hemorrhoid and rash); cold capsules and remedies; sinus relievers; calamine lotion; insect bite and sting preparations; diarrhea aids and remedies; gargles, intended for medical use; burn ointments and lotions, including sunburn ointments generally sold for use in treatment of sunburn; teething lotions and powders; cold sore and canker remedies; menstrual cramp relievers; hay fever aid products; motion sickness remedies; sleep aids (inducers); throat lozenges; eye drops, lotions, ointments and washes; allergy relief products; nasal drops and sprays; Ipecac; nicotine replacement therapies, including nicotine patches, gums, and lozenges; wart removers; Itch and rash relievers, including feminine anti-itch creams; liniments; ointment, medicated; bronchial inhalers; petroleum jelly and gauze.

Closing Statement 

This response constitutes a Technical Assistance Advisement under s. 213.22, F.S., which is binding on the Department only under the facts and circumstances described in the request for this advice, as specified in s. 213.22, F.S. Our response is predicated on those facts and the specific situation summarized above. You are advised that subsequent statutory or administrative rule changes or judicial interpretations of the statutes or rules upon which this advice is based may subject similar future transactions to a different treatment than expressed in this response.

You are further advised that this response, your request, and related backup documents are public records under Chapter 119, F.S., and are subject to disclosure to the public under the conditions of s. 213.22, F.S. Confidential information must be deleted before public disclosure. In an effort to protect confidentiality, we request you provide the undersigned with an edited copy of your request for Technical Assistance Advisement, the backup material, and this response, deleting names, addresses, and any other details which might lead to identification of the taxpayer. Your response should be received by the Department within 10 days of the date of this letter.

If you have any further questions with regard to this matter and wish to discuss them, you may contact me directly at 850-717-6363. 

Sincerely, Leigh L. Ceci 

Tax Law Specialist 

Technical Assistance & Dispute Resolution 

Record ID: 204842