WAC 151

Denturists

To Manufacture

Tax on retailers.

Tax on selected business services, financial businesses, or other business or service activities.

Exemptions - Certain prescription drugs

Tax imposed--Retail sales--Retail car rental.

Exemptions - Sales of machinery and equipment for manufacturing, research and development, or testing operations.

Exemption - Certain medical items

Exemptions - Machinery and equipment used for manufacturing, research and development, or testing operations.

Exemptions -- Certain medical items

Sales and use taxes authorized--Additional taxes authorized--Maximum rates.

Dentists, dental laboratories and physicians. Amended effective 9/9/04.

These rules all refer to resale certificates. Proposed action is to add standard language to recognize reseller permits for sales made on or after January 1, 2010.

KIDNEY DIALYSIS MACHINES AND HEART PACEMAKERSSALES AND USE TAX EXEMPT See Rule 18801 for identification of tax exempt items. RCW 82.08.945 and 82.12.945, effective July 1, 2004, provide sales and use tax exemptions for kidney dialysis machines. Implanted pacemakers qualify as prosthetic devices under the definition of "prosthetic device" in RCW 82.08.0283 that becomes effective July 1, 2004. Cancelled effective 6/30/04.

Naturopathic Medicines - Tax Exemption

Dental Industry Update

Use Tax Obligation of Physicians

Use Tax Obligation of Dentists

Tax Exemption for Naturopathic Medicines

Use Tax Reminder for Physicians - 6/28/99

Dental Industry Use Tax Reminder

Tax Changes on Dental Laboratories and Products

Tax Due on Commercial Use of Molds by Orthotic and Prosthetic Manufacturers

SALES TAX -- USE TAX -- DENTAL PRACTICE -- PATIENT FILES -- PATIENT RECORDS -- SALE OF.The sale of patient files and records by one dentist to another as part of the purchase of a dental practice is not a purchase of tangible personal property subject to sales or use tax. (Det. 90-139 overruled.)

B&O TAX - DRUGS - SALE OF -ADMINISTRATION.Only those drugs sold and physically administered by the seller are taxable under the services and other activities classifications of the B&O tax.Drugs sold to patients or their caregivers for either patient self -administration or administration by a caregiver other than the seller are taxable under the retailing classification of the B&O tax.

RULE 168, RULE 151, RULE 18801, RULE 224; RCW 82.04.290, RCW 82.08.020: B&O TAX -- MEDICAL CLINIC -- PRESCRIPTION DRUGS -- TRUE OBJECT. A medical clinic that administers chemotherapy drugs is taxable under the Service & Other B&O tax classification. Under the true object test, the clinic is performing a medical service, rather than engaging in the sale of tangible personal property subject to retailing B&O tax.

B&O TAX -- RETAIL SALES TAX -- PHYSICIANS -- DRUGS.When a physician administers a drug via injection to treat an allergic patient, the physician is considered to have sold the drug as tangible personal property if he itemizes the change.Such activity is considered a retail sale, separable, for state tax purposes, from the rendering of his/her professional services.The physician's acquisition of the drug is for resale so is not subject to retail sales tax.

B&O TAX -- PHYSICIANS -- DRUGS.The sale and administration of drugs by a physician to a patient is exempt of retail sales tax because of the prescription drug exemption, but it is subject to Service B&O tax rather than Retailing B&O because it is part of the medical services rendered by the physician. Department of Rev. v. Deaconess Hospital, No. 6098-I-II, Division Two, January 5, 1984.

B&O TAX - CLASSIFICATION - SERVICES - DENTAL LABORATORIES.Dental laboratories are required to report income from their activities under the Services B&O classification.Department may issue assessment on tax unpaid for four years plus the current year.

SERVICE B&O TAX -- DENTAL LABORATORIES -- RENDERING PROFESSIONAL SERVICE -- WHOLESALE VENDOR.Dental laboratories render professional services and are not wholesale vendors of merchandise to dentists. The functions of a dental laboratory are simply an extension of and adjunct to those services rendered by a dentist.

B&O TAX -- SERVICE -- PHYSICIANS -- CLINICS -- DRUGS.Income from charges for drugs administered by a physician or clinic topatients is subject to Service B&O tax rather than Retailing B&O because it is part of the medical services rendered by the physician or clinic.Accord: Det. No. 87-340A, 5 WTD 251 (1988).