Georgia Guidance Issued on Durable Medical Equipment

The Georgia Department of Revenue issued a guidance addressing whether a Taxpayer is required to collect sales tax on adjustable beds or mattresses  when sold to a customer with a prescription from a licensed practitioner.

The Taxpayer requesting the advisement is in the business of selling mattresses and specialty bedding. Some of Taxpayer’s sales include adjustable mattresses that are made for specific needs. Certain customers purchase specialty mattresses fit for their needs with a prescription from a licensed practitioner.

Georgia statute O.C.G.A. § 48-8-3 is a specific exemption for the sale or use of any durable medical equipment that is sold to an individual when a prescription is given. This exemption is not available to medical service providers.

Georgia defines “durable medical equipment” as equipment that withstands repeated use, primarily and customarily used for a medical treatment, which is not useful for a person that does not suffer from an illness or injury, is not worn on or in a body, and is not equipment that enhances mobility.

The Department determined that each bed must be reviewed to see if it is eligible to be considered “durable medical equipment.” Usually, adjustable beds, such as the ones sold by Taxpayer, are durable medical equipment if they are functionally equivalent to “hospital beds.” A hospital bed is defined as “a single bed with a frame in 3 sections so the head middle or foot can be raised as required.”

Georgia’s position on durable medical equipment is that it will evaluate items on a case by case basis. So long as the mattress at issue in the guidance is within the definition of “hospital beds” and is sold with a valid prescription from a physician, then the mattress can be deemed exempt from sales tax.

If you have erroneously remitted taxes on qualifying durable medical equipment, you may qualify for a tax refund. To apply for a tax refund with the Georgia Department of Revenue Taxpayers can submit the applicable ST-12 Claim for Refund. A qualified tax attorney can assist with the execution of the application and potential questions or concerns that may arise in the process.

Jeanette Moffa is an attorney who concentrates on state and local taxes at Moffa, Sutton, & Donnini, P.A. She is also an adjunct professor and assistant editor to the American Bar Association’s The Sales and Use Tax Deskbook. For more information please call us at 888-966-8216.