Sales Tax State Activity Update December 2005

Pennsylvania Probes Polarity Therapy

The Department of Revenue has issued a Sales and Use Tax Ruling to address the taxability of magnetic therapy products used as medical aids.

The taxpayer requesting the ruling provided the following list of products that it sells: neck/head wraps, shoulder wraps, elbow wraps, wrist supports, arthritis mitts, back supports, knee supports, ankle supports, magnadots, total body systems, magnetic wave insoles, cushion magnetic wave insoles, magnetic slippers, magnetic massage rolls, magnetic massage supports, magnetic contoured pillows, magnetic seat cushions, magnetic mattress pads, magnetic mats, magnetic pillow liners, magnetic mattress toppers, magnetic bracelets, magnetic link bracelets, smart foam rolls, smart foam rests, smart foam pills, and smart foam cushions. These products are designed to relieve pain and serve as healing aids.

72 P.S. § 7204(17) provides an exemption for various types of medical equipment including t herapeutic devices designed for the use of a particular individual to correct or alleviate a physical incapacity. The Office of Chief Council of the Pennsylvania Department of Revenue has concluded that the above magnetic therapy products qualify as therapeutic devices, according to the above referenced statute. Thus, the medical products in question are not subject to Pennsylvania sales and use tax.

View the full text on the Pennsylvania Department of Revenue Web site. (Sales and Use Tax Ruling No. SUT-05-030, Pennsylvania Department of Revenue, 11/17/05)