KRS 139.472: Exemption for certain medical items.

(1) Notwithstanding any other provisions of this chapter, the taxes imposed by this

chapter shall not apply to the sale or purchase of:

(a) A drug purchased for the treatment of a human being for which a prescription

is required by state or federal law, whether the drug is dispensed by a licensed

pharmacist, administered by a physician or other health care provider, or

distributed as a free sample to or from a physician's office;

(b) An over-the-counter drug purchased for the treatment of a human being for

which a prescription is issued;

(c) Medical oxygen and oxygen delivery equipment purchased for home use.

Oxygen delivery equipment includes:

1. High pressure cylinders, cryogenic tanks, oxygen concentrators, or

similar medical oxygen delivery equipment includi ng repair and

replacement parts for the equipment; and

2. Tubes, masks, and similar items required for the delivery of oxygen to

the patient;

(d) Insulin and diabetic supplies, including hypodermic syringes, needles, and

sugar (urine and blood) testing mat erials purchased by an individual for

private use;

(e) Colostomy, urostomy, or ileostomy supplies purchased by an individual for

private use;

(f) Prosthetic devices purchased by any health care provider for use in the

treatment of a specific individual or purchased by an individual as prescribed

by a person authorized under the laws of the Commonwealth to issue

prescriptions;

(g) Prosthetic devices that are individually designed or created for an individual

regardless of the purchaser;

(h) Mobility enhancing equipment for which a prescription is issued; and

(i) Durable medical equipment, including hospital beds for which a prescription

is issued.

(2) Except as specifically provided in subsection (1) of this section, supplies or

equipment used to deliver a drug to a patient are taxable.

(3) As used in this section and KRS 139.480:

(a) "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 as defined in KRS 139.485, that

is recognized in the official United States Pharmacopoeia, official

Homeopathic Pharmacopoeia of th e United States, or official National

Formulary, or a supplement to any of them, or is:

1. Intended for use in the diagnosis, cure, mitigation, treatment, or

prevention of disease; or

2. Intended to affect the structure or any function of the body;

(b) "Grooming and hygiene products" means soaps and cleaning solutions,

shampoo, toothpaste, mouthwash, antiperspirants, and suntan lotions,

regardless of whether the items meet the definition of an over -the-counter

drug;

(c) 1. "Over-the-counter drug" means a dr ug that contains a label that

identifies the product as a drug as required by 21 C.F.R. sec. 201.66.

The "over-the-counter drug" label shall include:

a. A "Drug Facts" panel; or

b. A statement of the active ingredients with a list of those

ingredients contained in the compound, substance, or preparation.

2. "Over-the-counter drug" shall not include grooming and hygiene

products;

(d) "Prescription" means an order, formula, or recipe issued in any form of oral,

written, electronic, or other means of transmiss ion by a person authorized

under the laws of the Commonwealth to prescribe a drug;

(e) 1. "Prosthetic device" means a replacement, corrective, or supportive

device, including repair and replacement parts for the device, worn on or

in the body to:

a. Artificially replace a missing portion of the body;

b. Prevent or correct a physical deformity or malfunction; or

c. Support a weak or deformed portion of the body.

2. "Prosthetic device" shall not include any of the following:

a. Corrective eyeglasses;

b. Contact lenses; or

c. Dental prosthesis;

(f) 1. "Mobility enhancing equipment" means equipment, including repair and

replacements part for same, which:

a. Is primarily and customarily used to provide or increase the ability

to move from one place to another and which is appropriate for

use either in a home or a motor vehicle;

b. Is not generally used by persons with normal mobility; and

c. Does not include any motor vehicle or equipment on a motor

vehicle normally provided by a motor vehicle manufacturer.

2. "Mobility enhancing equipment" shall not include durable medical

equipment; and

(g) 1. "Durable medical equipment" means equipment, inc luding repair and

replacement parts for same, which:

a. Can withstand repeated use;

b. Is primarily and customarily used to serve a medical purpose;

c. Generally is not useful to a person in the absence of illness or

injury; and

d. Is not worn in or on the body.

2. "Durable medical equipment" shall not include mobility enhancing

equipment or oxygen delivery equipment that is not worn in or on the

body.

3. As used in this paragraph, "repair and replacement parts" includes all

components or attachments used i n connection with durable medical

equipment.