2007 House Bill 1324 (Providing sales and use tax exemptions for prescribed durable medical equipment used in the home and prescribed mobility enhancing equipment.)

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Introduced by Rep. Ross Hunter, (D-Medina) (D) on January 17, 2007, to exempt sales and use tax from applying toward certain prescribed durable medical equipment. Among others, the equipment includes components of prosthetic devices, Gaseous or liquid bottled oxygen, or mobility enhancing equipment. The bill requires the seller to collect the tax but the buyer may petition the State for reimbursement. See companion SB 5648 .
- Referred to the House Finance Committee on January 17, 2007.
  - Substitute offered to the House Finance Committee on February 16, 2007, to delete the exemption for prescribed durable medical equipment and related components. The substitute bill also eliminates the proposed tax refund requirements for medically prescribed oxygen and kidney dialysis devices.
- Referred to the House Rules Committee on February 20, 2007.
- Referred to the House Finance Committee on January 14, 2008.
- Referred to the House Rules Committee on January 22, 2008.

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1) Re: 2007 House Bill 1324 (Providing sales and use tax exemptions for prescribed durable medical equipment used in the home and prescribed mobility enhancing equipment.) [by Care Medical on December 3, 2008]

Dear Anonymous,

One of the primary intentions is to clarify some of the existing complexities in sales tax for Durable Medical Equipment (DME). Even something as simple as a CPAP is terribly complex for both patients and providers. Using CPAP as an example, are usually considered DME which then it is subject to sales tax, but if the machine (not just the mask) is worn on the patient’s body it qualifies as a “prosthetic” and is exempt from sales tax. Det. No. 07-0150, 27 WTD 114 (2008).

Washington Department of Revenue (DOR) has ruled that sales tax is the payor’s responsibility. In many instances where the insurance provider does not recognize reimbursement of sales tax as a covered benefit, the tax responsibility ultimately falls on the insured patients themselves. This is an incredible burden for the patient during the very time in which they need assistance. Another thought worth mentioning is that DSHS pays sales tax for its Medicaid beneficiaries. The amount of loss for patients, families, providers, and the State of Washington are absolutely staggering.

Passage of such legislation would significantly assist Washington’s citizens access to more cost effective healthcare services, and would greatly reduce secondary costs associated with emergency and institutionalized care, which the State of Washington and insurance companies must then absorb. It is an utter shame that these bills have not been passed as the additional ~8.6% costs associated with sales tax places great burden on our veterans, disabled, elderly, and indigent populations.

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2) HB 1324 [by Anonymous on January 18, 2007]
"The bill requires the seller to collect the tax but the buyer may petition the State for reimbursement."

This makes no sense. It seems to me it would cost the state more to process the refund requests than the lost sales taxes.
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3) 2007 House Bill 1324 (Providing sales and use tax exemptions for prescribed durable medical equipment used in the home and prescribed mobility enhancing equipment.) [by admin on January 1, 2001]
Introduced in the House on January 17, 2007

Click here to view bill details.
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