Sales, Use and International Tax Activity Update - March 2010

New Jersey “Grooms” Health Care Product Language

The New Jersey Division of Taxation has revised a bulletin discussing the sales and use tax treatment of health care products, including drugs, grooming and hygiene products, prosthetic devices, durable medical equipment, and mobility-enhancing equipment.

Specifically, the bulletin was revised to reflect the fact that for purposes of the exemption for drugs sold pursuant to a doctor's prescription, the phrase sold pursuant to a doctor's prescription is interpreted by the division to mean that a prescription is required in order to purchase the product.

The bulletin was also revised to reflect the fact that the division narrowly interprets the phrase grooming and hygiene products, which are taxable, to apply to personal care items that would generally be purchased for non-medical reasons.

The Technical Bulletin can be viewed on the New Jersey Sate Web site.

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