SF 2260

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; exempting over-the-counter drugs
and certain medical equipment and mobility enhancing
equipment from the sales tax; amending Minnesota
Statutes 2004, section 297A.67, subdivision 7.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2004, section 297A.67,
subdivision 7, is amended to read:

Subd. 7.

Medicines; medical devices.

(a) new text begin Sales of the
following medicines and medical devices are exempt:
new text end

new text begin (1) new text end prescribed drugs deleted text begin and medicine, and insulin, deleted text end intended
for deleted text begin internal or external use, in the cure, mitigation,
treatment, or prevention of illness or disease in deleted text end human deleted text begin beings
are exempt. "Prescribed drugs and medicine" includes deleted text end new text begin use,
including new text end over-the-counter drugs deleted text begin or medicine deleted text end prescribed by a
licensed health care professional deleted text begin . deleted text end new text begin ;
new text end

deleted text begin (b) Nonprescription medicines consisting principally
(determined by the weight of all ingredients) of analgesics that
are approved by the United States Food and Drug Administration
for internal use by human beings are exempt. For purposes of
this subdivision, "principally" means greater than 50 percent
analgesics by weight.
deleted text end

deleted text begin (c) Prescription glasses, hospital beds, fever
thermometers, reusable deleted text end new text begin (2) single-use new text end finger-pricking devices
for the extraction of blood deleted text begin , blood glucose monitoring machines,
deleted text end and other new text begin single-use devices and new text end diagnostic agents used in
diagnosing, monitoring, or treating diabetes deleted text begin , and therapeutic
and deleted text end new text begin ;
new text end

new text begin (3) insulin and medical oxygen for human use are also
exempt, regardless of whether it is prescribed or sold
over-the-counter;
new text end

new text begin (4) new text end prosthetic devices deleted text begin are exempt. "Therapeutic devices"
means devices that are attached or applied to the human body to
cure, heal, or alleviate injury, illness, or disease, either
directly or by administering a curative agent. "Prosthetic
devices" means devices that replace injured, diseased, or
missing parts of the human body, either temporarily or
permanently. deleted text end new text begin , if prescribed by a licensed health care
professional, or paid for by Medicare or Medicaid;
new text end

new text begin (5) durable medical equipment for home use only; and
new text end

new text begin (6) mobility enhancing equipment.
new text end

new text begin (b) For purposes of this subdivision:
new text end

new text begin (1) "drug" means a compound, substance, or preparation, and
any component of a compound, substance, or preparation, other
than food and food ingredients, dietary supplements, or
alcoholic beverages that is:
new text end

new text begin (i) recognized in the official United States Pharmacopoeia,
official Homeopathic Pharmacopoeia of the United States, or
official National Formulary, and supplement to any of them;
new text end

new text begin (ii) intended for use in the diagnosis, cure, mitigation,
treatment, or prevention of disease; or
new text end

new text begin (iii) intended to affect the structure or any function of
the body;
new text end

new text begin (2) "durable medical equipment" means equipment, including
repair and replacement parts, but not including mobility
enhancing equipment, that:
new text end

new text begin (i) can withstand repeated use;
new text end

new text begin (ii) is primarily and customarily used to serve a medical
purpose;
new text end

new text begin (iii) generally is not useful to a person in the absence of
illness or injury; and
new text end

new text begin (iv) is not worn in or on the body;
new text end

new text begin (3) "mobility enhancing equipment" means equipment,
including repair and replacement parts, but not including
durable medical equipment, that:
new text end

new text begin (i) is primarily and customarily used to provide or
increase the ability to move from one place to another and that
is appropriate for use either in a home or a motor vehicle;
new text end

new text begin (ii) is not generally used by persons with normal mobility;
and
new text end

new text begin (iii) does not include any motor vehicle or equipment on a
motor vehicle normally provided by a motor vehicle manufacturer;
new text end

new text begin (4) "over-the-counter drug" means a drug that contains a
label that identifies the product as a drug as required by Code
of Federal Regulations, title 21, section 201.66. The label
must include a "drug facts" panel or a statement of the active
ingredients with a list of those ingredients contained in the
compound, substance, or preparation. Grooming and hygiene
products such as soaps, cleaning solutions, shampoo, toothpaste,
mouthwash, antiperspirants, and suntan lotions and sunscreens
are not over-the-counter drugs, regardless of whether they
otherwise meet the definition;
new text end

new text begin (5) "prescribed" means a direction in the form of an order,
formula, or recipe issued in any form of oral, written,
electronic, or other means of transmission by a duly licensed
health care professional; and
new text end

new text begin (6) "prosthetic device" means a replacement, corrective, or
supportive device, including repair and replacement parts, worn
on or in the body to:
new text end

new text begin (i) artificially replace a missing portion of the body;
new text end

new text begin (ii) prevent or correct physical deformity or malfunction;
or
new text end

new text begin (iii) support a weak or deformed portion of the body.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales after
December 31, 2005.
new text end