2008 Legislation
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HOUSE BILL NO. 357<br /> – Sales tax, prescriptions exempt

HOUSE BILL NO. 357

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Bill Status



H0357...............................................by REVENUE AND TAXATION
SALES TAX - Amends existing law to revise language regarding the exemption
of prescription drug sales from the sales and use tax.

01/17    House intro - 1st rdg - to printing
01/18    Rpt prt - to Rev/Tax
01/21    Rpt out - rec d/p - to 2nd rdg
01/22    2nd rdg - to 3rd rdg
01/24    3rd rdg - PASSED - 70-0-0
      AYES -- Anderson, Andrus, Barrett, Bayer, Bedke, Bell, Bilbao, Black,
      Block, Bock, Boe, Bolz, Bowers, Brackett, Bradford, Chadderdon,
      Chavez, Chew, Clark, Collins, Crane, Durst, Eskridge, Hagedorn, Hart,
      Harwood, Henbest, Henderson, Jaquet, Killen, King, Kren, Labrador,
      Lake, LeFavour, Loertscher, Luker, Marriott, Mathews, McGeachin,
      Mortimer, Moyle, Nielsen, Nonini, Pasley-Stuart, Patrick, Pence,
      Raybould, Ringo, Roberts, Ruchti, Rusche, Sayler, Schaefer,
      Shepherd(02), Shepherd(08), Shirley, Shively, Smith(30), Smith(24),
      Snodgrass, Stevenson, Thayn, Thomas, Trail, Vander Woude, Wills,
      Wood(27), Wood(35), Mr. Speaker
      NAYS -- None
      Absent and excused -- None
    Floor Sponsor - Wood(35)
    Title apvd - to Senate
01/25    Senate intro - 1st rdg - to Loc Gov
02/06    Rpt out - rec d/p - to 2nd rdg
02/07    2nd rdg - to 3rd rdg
02/12    3rd rdg - PASSED - 34-0-1
      AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett,
      Cameron, Coiner, Corder, Darrington, Davis, Fulcher, Geddes, Goedde,
      Hammond, Heinrich, Hill, Jorgenson, Kelly, Keough, Langhorst, Little,
      Lodge, Malepeai(Sagness), McGee, McKague, McKenzie, Pearce,
      Richardson, Schroeder, Siddoway, Stegner, Stennett, Werk
      NAYS -- None
      Absent and excused -- Gannon
    Floor Sponsor - McKenzie
    Title apvd - to House
02/13    To enrol
02/14    Rpt enrol - Sp signed
02/15    Pres signed
02/18    To Governor
02/19    Governor signed
         Session Law Chapter 19
         Effective: 07/01/08

Bill Text




                                                                       
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   Second Regular Session - 2008

                                                                       

                              IN THE HOUSE OF REPRESENTATIVES

                                     HOUSE BILL NO. 357

                             BY REVENUE AND TAXATION COMMITTEE

  1                                        AN ACT
  2    RELATING TO THE SALES AND USE TAX EXEMPTION FOR PRESCRIPTIONS;  AMENDING  SEC-
  3        TION  63-3622N,  IDAHO  CODE,  TO REVISE LANGUAGE AS TO WHICH PRESCRIPTION
  4        SALES ARE EXEMPT FROM THE SALES AND USE TAX AND TO MAKE TECHNICAL  CORREC-
  5        TIONS.

  6    Be It Enacted by the Legislature of the State of Idaho:

  7        SECTION  1.  That Section 63-3622N, Idaho Code, be, and the same is hereby
  8    amended to read as follows:

  9        63-3622N.  PRESCRIPTIONS. (a) There are exempted from the taxes imposed by
 10    this chapter the following when administered or distributed by a  practitioner
 11    licensed  by the state under title 54, Idaho Code, to administer or distribute
 12    such items or when purchased by or on behalf of an individual for use by  such
 13    individual  under  a prescription or work order of a practitioner: licensed by
 14    the state under title 54, Idaho Code, to prescribe such items:
 15        (1)  Drugs, hypodermic syringes,  insulin,  insulin  syringes,  artificial
 16        eyes, hearing aids, and hearing aid parts and accessories;
 17        (2)  Drugs and supplies used in hemodialysis and peritoneal dialysis;
 18        (3)  Braces and other orthopedic appliances;
 19        (4)  Dental prostheses and other orthodontic appliances, but not including
 20        fillings;
 21        (5)  Catheters,  urinary  accessories, colostomy supplies, and other pros-
 22        thetic devices which shall include, but is are not limited to, enteral and
 23        parenteral feeding equipment and  supplies,  (tubing,  pumps,  containers)
 24        catheter  devices  and  supplies, but not including eyeglasses and contact
 25        lenses;
 26        (6)  Equipment and devices or chemical reagents which are used to test  or
 27        monitor blood or urine of a diabetic;
 28        (7)  Other  durable  medical  equipment  and devices and related parts and
 29        supplies specifically designed for those products which shall include, but
 30        is are not limited to: oxygen equipment, oxygen cylinders, cylinder trans-
 31        port  devices  (sheaths,  carts),  cylinder   stands,   support   devices,
 32        regulators,  flowmeters,  tank wrench, oxygen concentrators, liquid oxygen
 33        base dispenser, liquid oxygen portable  dispenser,  oxygen  tubing,  nasal
 34        cannulas, face masks, oxygen humidifiers, oxygen fittings and accessories,
 35        respiratory  therapy equipment, room humidifiers, aspirators, aerosol com-
 36        pressors  (stationary  and  portable),   ultrasonic   nebulizers,   volume
 37        ventilators,   respirators   and   related  device  supplies,  percussors,
 38        vibrators, IPPB, circuits, devices and supplies, air oxygen mixers, manual
 39        resuscitators,  nebulizers,  tubing,  emergency  oxygen  delivery   units,
 40        patient  care equipment, physical and occupational therapy items, hospital
 41        beds, trapeze bars and  bar  stand,  bed  rails,  geriatric  chairs,  lift
 42        recliners,  bedside  commodes, overbed tables, patient lifts, patient lift
 43        slings, traction stands and pulleys, shower  seating,  shower  grip  bars,

                                       2

  1        raised  toilet  seats, toilet safety frames, walking canes, quad canes and
  2        accessories, walkers, wheeled walkers, walker  accessories,  I.V.  stands,
  3        crawlers,  posture  back  supports  for  seating,  posture  back supports,
  4        wheelchairs, crutches, crutch  pads,  tips,  grips,  restraints,  standing
  5        frame  devices  and  accessories,  hand exercise equipment and putty, spe-
  6        cially   designed   hand   utensils,   leg   weights,   paraffin    baths,
  7        hydrocollators, hydrotherm heating pads, communication aids for physically
  8        impaired,  specialized seating, desks, work stations, foam wedges, writing
  9        and speech aids for the impaired, dressing  aids, button loops and  zipper
 10        aids, grooming aids, dental aids, eating and drinking aids, splints, hold-
 11        ers,  household  aids for the impaired, shampoo trays, reaching aids, foam
 12        seating pads, decubitus seating pads, bed pads, fitted stroller, alternat-
 13        ing pressure pads and pumps,  stethoscope,  sphygmomanometers,  otoscopes,
 14        sitting   and   sleeping  cushions,  patient  transport  devices,  boards,
 15        stairglides, lifts  in  home,  transcutaneous  nerve  stimulators,  muscle
 16        stimulators, and bone fracture therapy devices.
 17        (b)  The  term "practitioner" means a physician, physician assistant, sur-
 18    geon, podiatrist, chiropractor, dentist, optometrist,  psychologist,  ophthal-
 19    mologist, nurse practitioner, denturist, orthodontist, audiologist, or hearing
 20    aid dealer or fitter or any person licensed by the state under title 54, Idaho
 21    Code,  to  prescribe,  administer or distribute items identified in subsection
 22    (a) of this section.
 23        (c)  The term "drug" means a drug which is:
 24        (1)  Defined in section 54-1705, Idaho Code,; and
 25        (2)  Either:
 26             (i)   lListed in a drug compendia which the state board  of  pharmacy
 27             requires to be maintained by Idaho licensed pharmacies,; or
 28             (ii)  tThe  use  of which requires a prescription under state or fed-
 29             eral law. The term shall not include articles intended for use in the
 30             diagnosis, cure, mitigation, treatment or prevention  of  disease  in
 31             animals other than man.
 32        (d)  The term "durable medical equipment" means equipment which:
 33        (1)  Can withstand repeated use;
 34        (2)  Is primarily and customarily used to serve a medical purpose;
 35        (3)  Generally  is  not  useful  to  a person in the absence of illness or
 36        injury; and
 37        (4)  Is appropriate for use in the home.
 38        (e)  The term "prosthetic device" means a device which replaces a  missing
 39    part  or  function of the human body and shall include any supplies physically
 40    connected to such devices.

Statement of Purpose / Fiscal Impact



                   STATEMENT OF PURPOSE

                        RS 17398

This bill updates the exemption in the Sales Tax Act for 
medical prescriptions.  It amends section 63-3622N, Idaho 
Code: 

(1) To clarify that the exemption applies to all 
practitioners authorized by Title 54, Idaho Code, to 
prescribe, including physician assistants.
 
(2) To include dental fillings in the exemption.  


                       FISCAL NOTE

$150,000 reduction in General Fund revenue.  



CONTACT
Name:    Ted Spangler/Dan John
Agency:  State Tax Commission 
Phone:   334-7530


STATEMENT OF PURPOSE/FISCAL NOTE			H 357