Sales Tax State Activity Update - June 2004

Certain Diabetic Supplies Exempt in Kansas

The Kansas Department of Revenue has issued a Private Letter Ruling (PLR) at the request of a taxpayer to discuss the taxability of glucose tablets, lancets and alcohol swabs. The items in question are commonly used in the treatment of diabetes.

The ruling concludes that the above items qualify for exemption when sold pursuant to a prescription. K.S.A. 79-3606(p) provides, in part, an exemption for all sales of drugs dispensed pursuant to a prescription. The term "drug" means a compound, substance or preparation and any component of a compound, substance or preparation, other than food and food ingredients, dietary supplements or alcoholic beverages, recognized in the official United States pharmacopoeia, official homeopathic pharmacopoeia of the United States or official national formulary, and supplement to any of them, intended for use in the diagnosis, cure, mitigation, treatment or prevention of disease or intended to affect the structure or any function of the body.

Further, in regards to the treatment of diabetes, K.S.A. 79-3606(q) provides an exemption for all sales of insulin dispensed by a person licensed by the state board of pharmacy to a person for treatment of diabetes at the direction of a person licensed to practice medicine by the board of healing arts.

(Kansas Department of Revenue, Private Letter Ruling P-2004-011, 4/27/2004) 06/04

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