5471011, 12A-1.002 - Florida Administrative Rules, Law, Code, Register

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Florida Department of State and Division of Library and Information Services

Notice: 5471011

Notice of Development of Rulemaking

Department:

DEPARTMENT OF REVENUE

Division:

Sales and Use Tax

Chapter:

SALES AND USE TAX

Overview

RULE:

12A-1.002	Practitioners of the Healing Arts (Repealed)
12A-1.015	Industrial Gases (Repealed)
12A-1.020	Licensed Practitioners; Drugs, Medical Products and Supplies
12A-1.0205	Veterinary Sales and Services
12A-1.021	Prosthetic and Orthopedic Appliances
12A-1.097	Public Use Forms

PURPOSE:

The purpose of the proposed repeal of Rule 12A-1.002, F.A.C. (Practitioners of the Healing Arts), is to remove provisions that will be rendered unnecessary with the adoption of the proposed substantial rewording of Rule 12A-1.020, F.A.C., and the proposed creation of Rule 12A-1.0205, F.A.C. Provisions applicable to practitioners of the healing arts are included in those proposed rules.
The purpose of the proposed repeal of Rule 12A-1.015, F.A.C. (Industrial Gases), is to remove provisions regarding the application of tax to certain gases that are redundant of other administrative rules. Provisions for compressed medical gases and medical oxygen are included in the proposed amendments to Rule 12A-1.020, F.A.C.
The purpose of the proposed substantial rewording of Rule 12A-1.020, F.A.C. (Licensed Practitioners; Drugs, Medical Products and Supplies, and Prosthetic and Orthopedic Appliances), is to clarify the application of tax to items sold to hospitals, physicians, dentists, and other licensed practitioners for use in their practice of medicine and clarify the exemption for drugs, medicinal supplies, prosthetic and orthopedic appliances, and medical products, supplies, and devices. These rule amendments, when adopted, will provide: (1) a definition of the terms “licensed practitioner” and “prescription” for purposes of the rule”; (2) that hospitals and licensed practitioners are required to pay tax on taxable items or services consumed in providing medical services; (3) the exemption provided for prescription drugs and medical gases and opaque drugs; (4) the exemption provided 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 and the taxability of cosmetics, toilet articles, and hygiene products; (5) that medical products and supplies are subject to tax, unless specifically exempt under Section 212.08(2), F.S.; (6) that medical products or supplies are exempt when dispensed pursuant to a written prescription; (7) that medical products or supplies bearing the prescription labeling required under federal law are exempt when intended to be used one time only; (8) the exemption for medical products or supplies that are temporarily or permanently incorporated into a patient; (9) that medical trays bearing the federally required prescription labeling and that are intended to be used one time only are exempt from tax; (10) a suggested exemption certificate to be used to purchase tax-exempt medical products or supplies; (11) the taxability of chemical compounds and test kits, including a list of tax-exempt and a list of taxable chemical compounds and test kits; (13) the definition of “prosthetic or orthopedic appliances” and when such appliances are exempt from tax; (14) the exemption for parts or other items added to tangible personal property so that a handicapped person may use an item; (15) the exemption for orthopedic or corrective shoes; (16) the taxability of eyeglasses and lenses; (17) the exemption for stock lenses and a suggested exemption certificate to buy certain stock lenses tax-exempt; and (18) recordkeeping requirements.
The purpose of the proposed creation of Rule 12A-1.0205, F.A.C. (Veterinary Sales and Services), is to provide for the taxability of veterinary services, for the taxability of items used in the practice of veterinary medicine, for the exemptions provided for substances possessing curative or remedial properties, and for the taxability of medical supplies and products used in the treatment of animals. The proposed new rule, when adopted, will provide: (1) that professional services provided by veterinarians are not subject to tax; (2) that charges for hospitalization of animals are not subject to tax; (3) that charges for boarding and grooming services are not subject to tax, but items consumed in providing those services are subject to tax; (4) that prescription drugs, medical gases, and opaque drugs are exempt when containing the required federal labeling; (5) for the taxability of items used by veterinarians for treatment of animals and a list of items that are specifically exempt when purchased by veterinarians; (6) that medical products or supplies bearing the prescription labeling required under federal law are exempt when intended to be used one-time only; (7) that medical products that are temporarily or permanently incorporated into an animal are exempt; (8) that medical trays bearing the prescription labeling required under federal law and that are intended for a single use are exempt from tax; (9) when commonly recognized substances possessing curative or remedial properties purchased by veterinarians are exempt; (10) a suggested exemption certificate to be used to purchase tax-exempt substances and medical products or supplies; (11) how to purchase items tax-exempt for purposes of resale to clients; and (12) recordkeeping requirements.
The purpose of the proposed repeal of Rule 12A-1.021, F.A.C., is to move the provisions regarding the exemptions provided for prosthetic and orthopedic appliances and for prescribed parts and attachments to tangible personal property so that a handicapped person can use them to the substantial rewording of Rule 12A-1.020, F.A.C. (Licensed Practitioners; Drugs, Medical Products and Supplies, and Prosthetic and Orthopedic Appliances).
The purpose of the proposed amendments to Rule 12A-1.097, F.A.C., is to adopt, by reference, changes to Form DR-46NT, Nontaxable Medical and General Grocery List, to include updated lists of tax-exempt Common Household Remedies and tax-exempt Prosthetic and Orthopedic appliances, as certified by the Department of Health on September 18, 2007.

SUBJECT:

The subject of this workshop is the proposed changes to Rule Chapter 12A-1, F.A.C. (Sales and Use Tax), regarding: (1) the application of tax to items sold to hospitals, physicians, dentists, and other licensed practitioners for use in their practice of medicine and the taxability of chemical compounds and test kits, common household remedies, drugs, eyeglasses and lenses, medical gases, medical products and supplies, and prosthetic and orthopedic appliances; and (2) the application of tax to items used in the practice of veterinary medicine, including medical supplies and products used in the treatment of animals, and the exemptions provided for substances possessing curative or remedial properties.

RULEMAKING AUTHORITY:

212.17(6), 212.18(2), (3), 213.06(1) FS.

LAW:

92.525(1)(b), (3), 95.091, 212.02, 212.05, 212.06, 212.08(2), 212.085, 212.13, 212.18(2), (3) FS.

PRINT PUBLISH DATE:

4/11/2008 Vol. 34/15

RELATED STATUTES
AND LAWS:

212.17(6), 212.18(2), (3), 213.06(1) FS., 92.525(1)(b), (3), 95.091, 212.02, 212.05, 212.06, 212.08(2), 212.085, 212.13, 212.18(2), (3) FS.

OVERSIGHT COMMITTEE:

Joint Administrative Procedures Committee
Florida Administrative Law Central Online Network (F.A.L.C.O.N.)

RELATED COURT CASES:

Division of Administrative Hearings

FEDERAL eRULEMAKING
WEB PORTAL:

Regulations.gov

HOW TO LINK TO
THIS NOTICE:

http://www.flrules.org/gateway/ruleno.asp?id=12A-1.002&PDate=4/11/2008&Section=1

REFERENCE MATERIALS:

No reference(s).

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