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Business Taxes Law Guide—Revision 2024

Sales and Use Tax Annotations


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P


425.0000 Prescription Medicines—Regulation 1591

Annotation 425.0824

(b) Specific Items Classified


425.0824 Sleep Apnea Treatment device Is a Prosthetic Device. A sleep apnea treatment device that is worn during sleep by a patient suffering from obstructive sleep apnea and assists the functioning of the patient's airway, which is a natural part of the patient's body, is a prosthetic device, in that it is "designed to be worn on or in the patient to replace or assist the functioning of a natural part of the human body" and is, therefore, a "medicine," the sale and storage, use, or other consumption of which is exempt from sales and use tax as long as it is dispensed or otherwise provided to a patient under certain specified circumstances. The device contains a pair of special valves, each of which is separately embedded on adhesive tape and each of which is placed just inside a nostril opening and held in place by the adhesive tape, so that each nostril opening is completely covered by the valves. The device is powered by the patient's own breathing through the product's valves, in that, during inhalation, the valves open completely, allowing the patient to breathe in freely, then, during exhalation, the valves close, directing the air flow through two smaller air channels in the valve, which increases the air pressure in the patient's airway and helps keep the patient's airway open. It is available only by prescription and is designed for single use only (i.e., it is disposable). It is also completely portable, and patients are able to move around freely while the product is attached to their nostrils. 6/6/11, 9/19/12.