Sales Tax State Activity Update - May 2005

Taxability of Transplants in Ohio

The Ohio Department of Taxation updated an Information Release concerning human organs, bone, tissues and blood and blood products.

The transfer of human organs, bone, tissue, blood or blood products for the purpose of injecting, transfusing, or transplanting into the human body are not subject to sales and use taxes. The transfer of such products is considered the provision of a service, per Ohio Revised Code § 2108.11. Further, federal law prohibits the transfer of human organs for transplant purposes "for valuable consideration".

However, the transfer of human hair, man-made items, animal organs, and other products of non-human origin for transplantation or implantation are subject to sales and use taxes. When these items are sold to physicians or to for-profit hospitals, tax is due, as the items are consumed in the provision of nontaxable medical services.

The full release can be viewed here.

(Sales and Use Tax Information Release ST 1989-03, Ohio Department of Taxation, Updated 12/2004)

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