BILL REQ. #:  S-1973.1 

READ FIRST TIME 02/21/07.   

     AN ACT Relating to sales and use tax exemptions for prescribed durable medical equipment used in the home and prescribed mobility enhancing equipment; amending RCW 82.08.0283, 82.12.0277, 82.08.803, 82.12.803, 82.08.945, and 82.12.945; 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, and the components of such 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;
     (d) Durable medical equipment not otherwise exempt under (c) of this subsection, and the components of such durable medical equipment, for home use and prescribed by a person licensed under the laws of this state to prescribe such equipment; and
     (e) Mobility enhancing equipment, and the components of mobility enhancing equipment, prescribed by a person licensed under the laws of this state to prescribe such 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)) Is not worn 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) 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, and the components of such 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;
     (d) Durable medical equipment not otherwise exempt under (c) of this subsection, and the components of such durable medical equipment, for home use and prescribed by a person licensed under the laws of this state to prescribe such equipment; and
     (e) Mobility enhancing equipment, and the components of mobility enhancing equipment, prescribed by a person licensed under the laws of this state to prescribe such 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.

Sec. 3   RCW 82.08.803 and 2004 c 153 s 104 are each amended to read as follows:
     ((The tax levied by RCW 82.08.020 shall not apply to)) (1) An exemption from the tax imposed by RCW 82.08.020 in the form of a refund is provided for sales of nebulizers, including repair ((and)), replacement, and component parts for nebulizers, for human use pursuant to a prescription. 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 nebulizers. "Nebulizer" means a device, not a building fixture, that converts a liquid medication into a mist so that it can be inhaled.
     (2) Sellers shall collect tax on sales subject to this exemption. The buyer shall apply for a refund directly from the department in a form and manner prescribed by the department.

Sec. 4   RCW 82.12.803 and 2004 c 153 s 105 are each amended to read as follows:
     (1) The provisions of this chapter shall not apply in respect to the use of nebulizers, including repair ((and)), replacement, and component parts for such nebulizers, for human use pursuant to a prescription. In addition, the provisions of this chapter shall not apply in respect to labor and services rendered in respect to the repairing, cleaning, altering, or improving of nebulizers. "Nebulizer" has the same meaning as in RCW 82.08.803.
     (2) Sellers obligated to collect use tax shall collect tax on sales subject to this exemption. The buyer shall apply for a refund directly from the department in a form and manner prescribed by the department.

Sec. 5   RCW 82.08.945 and 2004 c 153 s 110 are each amended to read as follows:
     The tax levied by RCW 82.08.020 shall not apply to sales of kidney dialysis devices, including repair ((and)), replacement, and component parts, for human use pursuant to a prescription. In addition, the tax levied by RCW 82.08.020 ((shall)) does not apply to charges made for labor and services rendered in respect to the repairing, cleaning, altering, or improving of kidney dialysis devices that are exempt under this section.
     (2) Sellers shall collect tax on sales subject to this exemption. The buyer shall apply for a refund directly from the department in a form and manner prescribed by the department.

Sec. 6   RCW 82.12.945 and 2004 c 153 s 111 are each amended to read as follows:
     (1) The provisions of this chapter ((shall)) do not apply to the use of kidney dialysis devices, including repair ((and)), replacement, and component parts, for human use pursuant to a prescription. In addition, the provisions of this chapter ((shall)) do not apply in respect to the use of labor and services rendered in respect to the repairing, cleaning, altering, or improving of kidney dialysis devices that are exempt under this section.
     (2) Sellers shall collect tax on sales subject to this exemption. The buyer shall apply for a refund directly from the department in a form and manner prescribed by the department.

NEW SECTION.  Sec. 7   This act takes effect July 1, 2008.