BILL REQ. #:  S-4087.1 

Read first time 01/10/2006.   Referred to Committee on Ways & Means.

     AN ACT Relating to sales and use tax exemptions for medical equipment; amending RCW 82.08.0283 and 82.12.0277; and providing an effective date.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1   RCW 82.08.0283 and 2004 c 153 s 101 are each amended to read as follows:
     (1) The tax levied by RCW 82.08.020 shall not apply to sales of:
     (a) Prosthetic devices prescribed, fitted, or furnished for an individual by a person licensed under the laws of this state to prescribe, fit, or furnish prosthetic devices;
     (b) Medicines of mineral, animal, and botanical origin prescribed, administered, dispensed, or used in the treatment of an individual by a person licensed under chapter 18.36A RCW; ((and))
     (c) Medically prescribed oxygen, including, but not limited to, oxygen concentrator systems, oxygen enricher systems, liquid oxygen systems, and gaseous, bottled oxygen systems prescribed for an individual by a person licensed under chapter 18.57 or 18.71 RCW for use in the medical treatment of that individual; and
     (d) Home medical equipment.
     (2) In addition, the tax levied by RCW 82.08.020 shall not apply to charges made for labor and services rendered in respect to the repairing, cleaning, altering, or improving of any of the items exempted under subsection (1) of this section.
     (3) The exemption in subsection (1) of this section shall not apply to sales of durable medical equipment or mobility enhancing equipment.
     (4) The definitions in this subsection apply throughout this section.
     (a) "Prosthetic device" means a replacement, corrective, or supportive device, including repair and replacement parts for a prosthetic device, worn on or in the body to:
     (i) Artificially replace a missing portion of the body;
     (ii) Prevent or correct a physical deformity or malfunction; or
     (iii) Support a weak or deformed portion of the body.
     (b) "Durable medical equipment" means equipment, including repair and replacement parts for durable medical equipment that:
     (i) Can withstand repeated use;
     (ii) Is primarily and customarily used to serve a medical purpose;
     (iii) Generally is not useful to a person in the absence of illness or injury; and
     (iv) Does not work in or on the body.
     (c) "Mobility enhancing equipment" means equipment, including repair and replacement parts for mobility enhancing equipment that:
     (i) Is primarily and customarily used to provide or increase the ability to move from one place to another and that is appropriate for use either in a home or a motor vehicle;
     (ii) Is not generally used by persons with normal mobility; and
     (iii) Does not include any motor vehicle or equipment on a motor vehicle normally provided by a motor vehicle manufacturer.
     (d) "Home medical equipment" means medical equipment, supplies, or devices prescribed by a person licensed under chapter 18.57 or 18.71 RCW for use by a patient at home for the treatment of a medical condition. Home medical equipment is equipment that would not be useful to a person in the absence of illness or injury. Home medical equipment includes, but is not limited to, wound care supplies, wheelchairs, hospital beds, standing aids, walking aids, bathroom aids, respirators, splints, crutches, lifting chairs connected and used in conjunction with a lifting device, and parts and accessories of such items.
     (e) The terms "durable medical equipment" and "mobility enhancing equipment" are mutually exclusive.

Sec. 2   RCW 82.12.0277 and 2004 c 153 s 109 are each amended to read as follows:
     (1) The provisions of this chapter shall not apply in respect to the use of:
     (a) Prosthetic devices prescribed, fitted, or furnished for an individual by a person licensed under the laws of this state to prescribe, fit, or furnish prosthetic devices;
     (b) Medicines of mineral, animal, and botanical origin prescribed, administered, dispensed, or used in the treatment of an individual by a person licensed under chapter 18.36A RCW; ((and))
     (c) Medically prescribed oxygen, including, but not limited to, oxygen concentrator systems, oxygen enricher systems, liquid oxygen systems, and gaseous, bottled oxygen systems prescribed for an individual by a person licensed under chapter 18.57 or 18.71 RCW for use in the medical treatment of that individual; and
     (d) Home medical equipment.
     (2) In addition, the provisions of this chapter shall not apply in respect to the use of labor and services rendered in respect to the repairing, cleaning, altering, or improving of any of the items exempted under subsection (1) of this section.
     (3) The exemption provided by subsection (1) of this section shall not apply to the use of durable medical equipment or mobility enhancing equipment.
     (4) (("Prosthetic device," "durable medical equipment," and "mobility enhancing equipment" have the same meanings as in RCW 82.08.0283.)) The definitions in RCW 82.08.0283 apply to this section.

NEW SECTION.  Sec. 3   This act takes effect July 1, 2006.