Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 65 - Sales and Use Tax › Subchapter 19 - Specific Applications and Examples › Part 15 - "H" › Section 710:65-19-142 - Hospitals, nursing homes, similar institutions and practitioners

Current through Vol. 41, No. 20, July 1, 2024
(a)
General
				  provisions.
Hospitals, nursing homes, similar institutions and
				  practitioners primarily engaged in the business of rendering services, are
				  generally considered to be the consumers or users of tangible personal property
				  and services used in the operation of the institutions.Thus, with the exception
				  of drugs, not to include over-the-counter drugs, and prosthetic devices, the
				  gross proceeds derived from sales of tangible personal property and certain
				  services to such institutions and practitioners are subject to tax. In-state
				  vendors collect and remit sales tax on sales of such property to the
				  institutions and practitioners, and use tax is due on out-of-state purchases.
				  Healthcare institutions are not required to collect, report, and remit sales
				  tax on gross receipts from meals, bandages, dressings, drugs, x-ray photographs
				  or other tangible personal property when such items of tangible personal
				  property are used in the rendering of their service, regardless of whether the
				  items are billed separately.
(b)
Vendors selling to healthcare institutions.
Sellers of tangible
				  personal property to institutions and practitioners are required to collect tax
				  on sales of such property unless the hospital, nursing home, or similar
				  institution is owned or operated by the federal government, the State of
				  Oklahoma, a city, county, public trust, or a federally-recognized Indian Tribe,
				  in which case the exemption described at
OAC
710:65-13-130 will
				  apply.
(c)
Exceptions to the
				  requirement to pay sales tax on purchases.
Hospitals, nursing homes,
				  similar institutions and practitioners engaged in the administration of drugs
				  to their patients may purchase drugs, except for over-the-counter drugs, and
				  prosthetic devices for use by individuals, exempt from sales taxas outlined in
				  subsections (a) and (c) of
				  710:65-13-170.
(d)
Sales tax refund claims.
(1)
Purchases made prior to July 1,
				  2022.
For purchases made prior to July 1, 2022, a refund may be claimed
				  by hospitals, nursing homes, similar institutions and practitioners that
				  dispense or provide medical appliances, medical devices or medical equipment to
				  Medicare or Medicaid patients for the sales taxes previously paid by the
				  institution or practitioner on such items. The documentation set out in (A)
				  through (C) of this paragraph must be obtained as part of the claimant's
				  records to substantiate the exemption claimed:
(A) Name and address of the purchaser or
				  lessee or person on whose behalf the item is being purchased or
				  leased;
(B) A copy of the
				  prescription or work order; and
(C)
				  A copy of the document which shows that the person on whose behalf the item is
				  being purchased or leased is a Medicare or Medicaid
				  patient.