State of NevadaDepartment of Taxation
Medical Industry
Topics Covered
Medicine / DrugsDietary SupplementProsthetic DeviceSales To GovernmentHospitals
Mobility Enhancing EquipmentDentistsDental LaboratoriesDurable Medical Equipment
Medicine or Drugs
Definition:Compound, substance or preparation and any component of a compound, substance or preparation which is recognized by:US PharmacopoeiaHomeopathic PharmacopoeiaNational FormularyAny Supplementary of the above
Intended for use in the diagnosis, cure, mitigation, treatment or prevention of disease or affliction of the human body as prescribed by a physician.Intended to affect the structure or any function of the body.
Medicine or Drugs – Are They Exempt?
Yes, if:Furnished by a licensed physician, dentist or podiatric physician to their patient.Furnished by a hospital for treatment of a person to the order of alicensed physician, dentist or podiatricphysician.
Sold to a licensedphysician,dentist, podiatricphysicianor hospital for the treatment of a human being.Dispensed by a licensed pharmacy if prescribed by a licensed physician, dentist or podiatricphysician.
Other Examples of Medicine
Statutes:NRS 372.283NAC 372.019NRS 360B.435NRS 360B.455NRS 360B.465
Drugs or Medicine prescribed includes, without limitations:SplintsBandagesPadsCompressesDressingsAny DrugInjectable Dermal FillersSaline SolutionsMedical Grade GlassInsulin
Statutes:NRS 372.283NAC 372.019NRS 360B.435NRS 360B.455NRS 360B.465
Not MedicineDrugs or Medicine prescribeddoes not include:Auditory, ophthalmic or ocular devicesInstruments, crutches, canes, devices/other mechanical, electronic, optical/physical equipmentAlcoholic beverage, other than as a solution in ordinary preparation of medicineFood ingredientBraces or supportsnot prescribedor applied by a licensed providerDietary Supplements
Dietary Supplement & Tonic/Vitamin Taxable
Any product, other than tobacco, that contains one or more of the following:Tonics & VitaminsHerbsMineralAmino AcidRequired to be labeled with a supplemental label per 21 C.F.R
Is intended for human ingestion in the form of:TabletCapsulePowderSoftgelGelcapLiquid
NRS 360B.430
NRS 360B.495
Sales to Government Entities - Exemption
Per NRS 372.7285 and NAC 372.698An item may normally be taxableButIf prescribed by a licensed providerAndPaid for by Medicare or MedicaidIt is exempt from tax
Prosthetic Device – Exempt From Tax
Statutes:NRS 372.283NRS 372.7285NRS 360B.475NAC 372.027Nevada Supreme Court Decision –State v.LohseandCorbridge
Definition:A replacement, corrective or supportive device, worn on or in the bodyReplaces artificially a missing portion of the bodySupports a weak or deformed portion of the bodyDental braces and related materialDoes not interfere with mobilityDefinitiondoes notinclude unless paid for by Medicare/Medicaid:Corrective eyeglassesContact lensesHearing aids
Durable Medical Equipment - Taxable
Statutes:NRS372.7285NRS 372.283NAC 372.698NAC 372.020*Note - Vote of the people in 2016 to exempt some durable medical equipment, the law is not in effect yet.
Definition:Can withstand repeated usePrimarily and customarily used to serve medical purposeExamples:Orthotic PillowsAnesthesia VentilatorsBone Growth StimulatorsKidney Dialysis MachinesOxygen ConcentratorsNebulizer MachinesCPAP MachinesDurable Medical Equipment is exempt from taxes if paid for by Medicare or Medicaid
Mobility Enhancing Equipment - Taxable
Statutes:NRS 372.283NAC 372.024
Definition:Primarily and customarily used to provide or increase the ability to move from place to placeIs not used by people with normal mobilityDoes not include motor vehicleHowever, it does include the car seats for children with disability and swivel seats for persons with a disability.Examples:Wheelchair, Walker, ScooterMobility Enhancing Equipment is exempt from taxes if paid for by Medicare or Medicaid
Dental Professions – NRS 372.283
Are consumers and must pay tax on purchases for:MaterialsSuppliesDental Laboratory ProductsAll other tangible personal property used in performing services
Are considered the retailers of the products:PlatesInlaysAll other products they manufacture for DentistsTax applies to entire charge regardless if materials and services are separately stated
Dentists
Dental Laboratories
Hospitals – NAC 372.260
Does not collect tax on:Tangible personal property furnished to inpatientsMeals served to staffRetailer and collects tax on:Tangible personal property sold to outpatientsPharmacy sales for any purpose other than hospital services
Shall pay either sales or use tax on purchases of tangible personal propertyMust collect sales tax on tangible personal property furnished to inpatientsMeasured by:Charge for the property if separately stated or the cost to the hospital
NRS 372.325 – State Hospitals
All Other Hospitals – Including Nonprofit & Private
Hospitals – Other Services and Income Outlets
Hospitals are considered as a retailers of the tangible personal property sold in the following:CafesRestaurantsGift ShopsOther similar facilitiesMust collect sales tax from patrons and pay the tax to the StateThese are not considered to be within the scope or the primary function of a charitable hospital or for profit facilities
Reminder
Please be advised that any responses to inquires made to the Department are only binding if put in writing.Examples include:Nevada Revised Statutes (NRS)Nevada Administrative Code (NAC)Technical BulletinsNevada Tax NotesWritten Correspondence
Nevada Department of Taxation –Contact Information
Southern Nevada:Grant Sawyer Building555 E. Washington Ave, Suite 1300Las Vegas, NV 891012550PaseoVerde Pkwy, Suite 180Henderson, NV 89074
Northern Nevada:1550 College Pkwy,Suite 115Carson City, NV 897064600KietzkeLn, Building L, Suite 235Reno, NV 89502
Hours: Monday to Friday8:00 AM to 5:00 PM
Call Center:1-866-962-3707
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