1. (a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.

   1. (1) Brace--Any device used on or attached to the human body, giving rigidity or support for the purpose of correcting a physical ailment or defect.
   2. (2) Corrective lenses--Eyeglasses, contact lenses, or other visual aids that are dispensed or prescribed by an ophthalmologist or optometrist.
   3. (3) Dental device--An artificial replacement of one or more teeth or a dental appliance worn on the teeth to correct irregularities of growth or position. For the purposes of this section, the term dental device does not include toothbrushes, toothpaste, dental floss, mouth mirrors, or other devices used to prevent cavities or plaque build-up or removal.
   4. (4) Drugs and medicines--Those commonly recognized substances possessing identification, curative, or remedial properties which are applied to or consumed by humans or animals either internally or externally for the alleviation of pain or for the diagnosis, cure, or prevention of sickness, disease, or suffering. The terms "drugs and medicines" do not include hardware of any kind, equipment, appliances, devices, or chemicals used to test body fluids and tissues.
   5. (5) Hearing aid--Any appliance or device worn to correct or aid defective hearing. The term also includes an audio loop used by a person who is deaf.
   6. (6) Hypodermic needle--A hollow needle adapted for use with hypodermic syringes.
   7. (7) Hypodermic syringe--A small syringe with a hollow needle adapted for use in removing or injecting material beneath the skin.
   8. (8) Ileostomy, colostomy, and ileal bladder appliance--Any device surgically implanted or surgically formed to assist the human body in the elimination of natural waste.
   9. (9) Orthopedic appliance--Any appliance or device designed specifically for use in the correction or prevention of human deformities, defects, or chronic diseases of the skeleton, joints, or spine.

   10. (10) Prosthetic device--Any item:

       1. (A) that is artificial and replaces a missing part of the body; or
       2. (B) that performs the function of a vital organ or appendage of the human body; or
       3. (C) that is permanently implanted in the body.
   11. (11) Therapeutic appliance or device--Any item designed to alleviate pain or designed for use during the treatment or cure of human sickness, disease, suffering, or deformity.

2. (b) Drugs and medicines.

   1. (1) Insulin is exempt whether or not sold by prescription.
   2. (2) Sales tax is not due on the sale of drugs and medicines sold or dispensed to humans or for animals on the oral or written prescription of licensed practitioners of the healing arts. Sales tax is due on the sale of all other nonprescription drugs and medicines and the retailer must collect tax from the purchaser on such sales.

3. (c) Medical equipment.

   1. (1) Sales tax is not due on the sale, lease, or rental of medical equipment meeting the definition of a brace, corrective lens, hearing aid, orthopedic appliance, prosthetic device, or dental device. Sales tax is not due on replacement parts designed specifically for such devices and appliances. With the exception of corrective lenses, a prescription is not required.
   2. (2) Sales tax is not due on the sale of ileostomy, colostomy, and ileal bladder appliances, related supplies or replacement parts designed specifically for such appliances.
   3. (3) Sales tax is not due on the sale of hypodermic syringes and hypodermic needles used for medical purposes.
   4. (4) Sales tax is not due on the sale, lease, or rental of hospital beds or their replacement parts. A hospital bed is the type of bed used in a hospital for rest, recuperation, and treatment. A hospital bed does not include an operating table, delivery table, examination table, stretcher, or gurney. A prescription is not required.

   5. (5) Sales or use tax is not due on the sale, lease, or rental of the following items when used by the deaf. An exemption certificate is not required for the purchase, rental, or lease of these items:

      1. (A) hearing aids;
      2. (B) specialized printing or signalling equipment used by the deaf for the purpose of enabling the deaf to communicate through the use of an ordinary telephone, including all materials, paper, and printing ribbons used in that equipment;
      3. (C) a light signal and device to adapt items such as telecommunication devices for the deaf (TDD), telephones, doorbells, and smoke alarms; and
      4. (D) adaptive devices or adaptive software for computers used by persons who are deaf.

   6. (6) Sales or use tax is not due on the sale, lease, or rental of the following items when used by the legally blind. An exemption certificate is not required for the purchase, rental, or lease of these items:

      1. (A) a braille wristwatch, braille writer, braille paper;
      2. (B) braille electronic equipment that connects to computer equipment and the necessary adaptive devices and adaptive computer software; and
      3. (C) harness for guide dogs.

   7. (7) Sales or use tax is not due on the sale, lease, or rental of the following items when used by the legally blind if an exemption certificate is provided to the seller:

      1. (A) a slate and stylus;
      2. (B) print enlarger;
      3. (C) light probe;
      4. (D) magnifier;
      5. (E) white cane;
      6. (F) talking clock; and
      7. (G) large print terminal and talking terminal.
   8. (8) Sales tax is not due on the sale, lease, or rental of therapeutic appliances, devices, and related supplies specifically designed for those products when sold, leased, or rented to individuals under a prescription of a licensed practitioner of the healing arts. A hot tub, spa, or similar appliance qualifies as a therapeutic appliance when prescribed for the purchaser by a licensed practitioner of the healing arts. The patient must provide the seller of the hot tub, spa, or similar appliance with a prescription, an exemption certificate, and a signed statement on letterhead from the licensed practitioner. The signed statement should specify the medical requirements for the hot tub, spa, or similar appliance. Unless a hospital, nursing home, or other institution qualifies for exemption under the Tax Code, §151.310(a)(1) or (2), the institution must pay sales tax on equipment and supply items used to provide medical services unless the item qualifies for exemption under paragraphs (1)-(3) of this subsection.

Source Note:The provisions of this §3.284 adopted to be effective January 1, 1976; amended to be effective November 15, 1976, 1 TexReg 3099; amended to be effective July 5, 1978, 3 TexReg 2086; amended to be effective November 16, 1979, 4 TexReg 3985; amended to be effective November 18, 1981, 6 TexReg 4063; amended to be effective December 21, 1983, 8 TexReg 5038; amended to be effective December 6, 1991, 16 TexReg 6756; amended to be effective March 9, 1995, 20 TexReg 1337; amended to be effective March 12, 1996, 21 TexReg 1685.