Oklahoma Tax Commission Determines Taxpayer’s Prosthetic Device Sales Were Exempt From Sales Tax

The Oklahoma Tax Commission (OTC) Feb. 4, 2021 determined in a letter ruling the sales and use taxability of Taxpayer’s prosthetic device sales. Taxpayer, a manufacturer/retailer, sold prosthetic and medical devices and durable equipment to health care providers. Taxpayer inquired about the taxation of prosthetics and exemption requirements for the sales. The OTC determined: 1) Taxpayer’s implant sales for use by an individual constituted prosthetic devices and were therefore tax-exempt; 2) the items sold must meet the statutory definition of prosthetic devices to qualify for the exemption; 3) Taxpayer must sufficiently detail and disclose sales of qualifying devices as a ...