Sales Tax State Activity Update - December 2004

Kansas Rules on Taxability of Prostate Treatment Equipment

The Kansas Department of Revenue has issued a Private Letter Ruling (PLR) to discuss the taxability of microwave equipment and catheters used in treating prostate enlargement. The treatment, known as Cooled ThermoTherapy® , is prescribed by a urologist. The treatment involves fitting a single use catheter into the body through the urethra. Microwave energy is then applied via the catheter to the prostate. The diseased area is heated, which shrinks the tissue and enables the prostate to return to normal size and function properly.

K.S.A. 79-3606(r) provides an exemption for all sales of prosthetic devices prescribed in writing by a person licensed to practice the healing arts, dentistry or optometry. Prosthetic devices are defined as a replacement, corrective or supportive device including repair and replacement parts worn on or in the body to artificially replace a missing portion of the body, prevent or correct physical deformity, malfunction or support a weak or deformed portion of the body.

The Kansas Department of Revenue has concluded that the microwave equipment would not be considered a prosthetic device, and therefore would not be exempt from sales tax. However, the catheters used in the described manner to treat prostate enlargement would be regarded as prosthetic devices, and therefore would be exempt from sales tax. .

The full text may be accessed at: http://www.ksrevenue.org/pilrd.htm Kansas Department of Revenue, Private Letter Ruling P-2004-053, 10/19/04

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