Sales and Use Tax TAA 19A-020 Medical Exemptions
TAX: Sales and Use
TAA #: 19A-020
ISSUE: Medical Exemptions
STATUTE CITE: Section 212.08(2)(a), Fla. Stat.
RULE CITE: 12A-1.020(7)(a)5., Fla. Admin. Code
QUESTION: Whether the rental of a “Blood Coagulation Analyzer XXXXXXXXXXXXXX”
and a “XXXXXXXXXXXXXXXX Hematology Analyzer” is exempt from taxation.
ANSWER: Yes, the rental of the “Blood Coagulation Analyzer
XXXXXXXXXXXXXXXXXXXXXXX” and the “XXXXXXXXXXXXXXXXXX Hematology
Analyzer” are exempt from taxation pursuant to Section 212.08(2)(a), Fla. Stat., and Rule
12A-1.020(7)(a)5., Fla. Admin. Code.
October 3, 2019
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Technical Assistance Advisement
Sales & Use Tax
Section 212.08, Florida Statutes
Rule 12A -1.020, Florida Administrative Code
XXXXXXXXXXXXXXXXXXX (the Taxpayer)
Sales Tax #: XXXXXXXXXXXXXXXXXXX
Dear XXXXXXXXXXXXXXXX,
This is in response to your letter dated July 30, 2019, requesting this Department’s
issuance of a Technical Assistance Advisement (“TAA”) pursuant to Section 213.22,
Florida Statutes (Fla. Stat.), and Chapter 12-11, Florida Administrative Code (Fla. Admin.
Code) regarding the taxability of certain blood analyzers used by your client,
XXXXXXXXXXXXXXXXXXX
c/o XXXXXXXXXXXXXXXXXXXXX
XXXXXXXXXXXXXXXXXXXXXXXXXXXXX. Your request has been carefully examined,
and the Department finds it to be in compliance with the requisite criteria set forth in
Chapter 12-11, Fla. Admin. Code. This response to your request constitutes a TAA and
is issued to you under the authority of Section 213.22, Fla. Stat.
Issue
Whether XXXXXXXXXXXXXXXXXXX’s rentals of a “Blood Coagulation Analyzer
XXXXXXXXXXXXXXXXXXXXX” and a “XXXXXXXX Hematology Analyzer” are exempt
from taxation?
Facts Provided by Taxpayer
The printouts attached to your e-mail explain that the automated Blood Coagulation
Analyzer is a cap-piercing model that measures blood samples while the tubes within
which the blood is contained remain closed. This machine is used to test thrombotic
tendency and for health monitoring. The testing parameters of the blood coagulation
analyzer include eight (8) parameters of coagulation factors and testing parameters for
chromogenic substrate, turbidimetric immunoassay, and agglutination. The Hematology
Analyzer is used for in-vitro diagnostic screening of patient populations in clinical
laboratories and provides Complete Blood Cell (CBC) count, Leukocyte 5-Part Differential
(Diff), Reticulocyte (Retic), and Nucleated Red Blood Cell (NRBC) per cent on whole
blood.
Law and Discussion
Section 212.08, Florida Statutes (Fla. Stat.), provides, in pertinent part:
The sale at retail, the rental, the use, the consumption, the distribution,
and the storage to be used or consumed in this state of the following
are hereby specifically exempt from the tax imposed by this chapter.
***
(2) EXEMPTIONS; MEDICAL.—
(a) ….. chemical compounds and test kits used for the diagnosis or
treatment of human disease, illness or injury…
Emphasis added.
Rule 12A-1.020(7), Fla. Admin. Code, states, in pertinent part:
XXXXXXXXXXXXXXXXXXX
c/o XXXXXXXXXXXXXXXXXXXXX
(a) The sale of chemical compounds and test kits used for
the diagnosis or treatment of human disease, illness, or
injury is exempt. The following is a nonexhaustive list of
chemical compounds and test kits that are not subject to tax:
***
5. Blood analyzers, blood collection tubes, lancets, capillaries,
test strips, tubes containing chemical compounds, and test kits to
test human blood for levels of albumin, cholesterol, HDL, LDL,
triglycerides, glucose, ketones, or other detectors of illness,
disease, or injury;…
Emphasis added. Further, Form DR-46NT, which is incorporated by reference in Rule
12A-1.097, Fla. Admin. Code, specifically exempts the human use, with or without a
prescription, of “blood analyzers.”
Concluding Statement
Taxpayer’s rental of the “Blood Coagulation Analyzer XXXXXXXXXXXXXXXX” and the
“XXXXXXXXXXXXX Hematology Analyzer,” used for the diagnosis or treatment of human
disease, illness, or injury, are exempt from taxation as “blood analyzers” pursuant to
Section 212.08(2)(a), Fla. Stat., and Rule 12A-1.020(7)(a)5., Fla. Admin. Code.
This response constitutes a Technical Assistance Advisement under Section 213.22, Fla.
Stat., which is binding on the Department only under the facts and circumstances
described in the request for this advice, as specified in Section 213.22, Fla. Stat. 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, and your request and related backup
documents are public records under Chapter 119, Fla. Stat., and are subject to disclosure
to the public under the conditions of Section 213.22, Fla. Stat. 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, and the backup material and this response, deleting names, addresses and
any other details which might lead to identification of the taxpayer. Please submit your
redacted request and backup material to the Department within 10 days of the date of this
letter.
XXXXXXXXXXXXXXXXXXX
c/o XXXXXXXXXXXXXXXXXXXXX
October 3, 2019
Florida Department of Revenue
Page #4
Respectfully,
Donna La Plante
Donna La Plante
Senior Attorney
Florida Department of Revenue
Technical Assistance and Dispute Resolution
Record ID: # XXXXX
cc: XXXXX XXXXXX XXXXXXXXXX
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