84R18774 BEF-D
By: Bonnen of Galveston, et al. H.B. No. 633
A BILL TO BE ENTITLED
AN ACT
relating to a sales and use tax exemption for certain health care
supplies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 151.313(a), (c), and (e), Tax Code, are
amended to read as follows:
(a) The following items are exempted from the taxes imposed
by this chapter:
(1) a drug or medicine, other than insulin, if
prescribed or dispensed for a human or animal by a licensed
practitioner of the healing arts, including a veterinarian;
(2) insulin;
(3) a drug or medicine that is required to be labeled
with a "Drug Facts" panel in accordance with regulations of the
federal Food and Drug Administration, without regard to whether it
is prescribed or dispensed by a licensed practitioner of the
healing arts;
(4) a hypodermic syringe or needle;
(5) a brace; hearing aid or audio loop; orthopedic,
dental, or prosthetic device; ileostomy, colostomy, or ileal
bladder appliance; or supplies or replacement parts for the listed
items;
(6) a therapeutic appliance, device, and any related
supplies specifically designed for those products, if dispensed or
prescribed for a human or animal by a licensed practitioner of the
healing arts, including a veterinarian, when those items are
purchased and used by:
(A) an individual for whom the items listed in
this subdivision were dispensed or prescribed; or
(B) an owner or caretaker of an animal for which
the items listed in this subdivision were dispensed or prescribed;
(7) corrective lens and necessary and related
supplies, if dispensed or prescribed by an ophthalmologist or
optometrist;
(8) 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 and all materials, paper,
and printing ribbons used in that equipment;
(9) a braille wristwatch, braille writer, braille
paper and braille electronic equipment that connects to computer
equipment, and the necessary adaptive devices and adaptive computer
software;
(10) each of the following items if purchased for use
by the blind to enable them to function more independently: a slate
and stylus, print enlarger, light probe, magnifier, white cane,
talking clock, large print terminal, talking terminal, or harness
for guide dog;
(11) hospital beds;
(12) blood glucose monitoring test strips;
(13) an adjustable eating utensil used to facilitate
independent eating if purchased for use by a person, including a
person who is elderly, has a physical disability [or physically
disabled], has had a stroke, or is a burn victim, who does not have
full use or control of the person's hands or arms;
(14) subject to Subsection (d), a dietary supplement;
and
(15) intravenous systems, supplies, and replacement
parts designed or intended to be used in the diagnosis or treatment
of humans or animals.
(c) A product is a drug or medicine for purposes of this
section if the product:
(1) is intended for use in the diagnosis, cure,
mitigation, treatment, or prevention of disease, illness, injury,
or pain;
(2) is:
(A) applied to the human body or is a product that
a human ingests or inhales; or
(B) prescribed or dispensed by a veterinarian and
is applied to the body of an animal or is a product that an animal is
intended to ingest or inhale;
(3) is not an appliance or device; and
(4) is not food.
(e) A product is an intravenous system for purposes of this
section if, regardless of whether the product is designed or
intended to be inserted subcutaneously into any part of a human's or
animal's [the] body, the product is designed or intended to be used
to administer fluids, electrolytes, blood and blood products, or
drugs [to patients] or to withdraw blood or fluids [from patients].
The term includes access ports, adapters, bags and bottles,
cannulae, cassettes, catheters, clamps, connectors, drip chambers,
extension sets, filters, in-line ports, luer locks, needles, poles,
pumps and batteries, spikes, tubing, valves, volumetric chambers,
and items designed or intended to connect qualifying products to
one another or secure qualifying products to a patient who is a
human or animal. The term does not include a wound drain.
SECTION 2. The changes in law made by this Act do not affect
tax liability accruing before the effective date of this Act. That
liability continues in effect as if this Act had not been enacted,
and the former law is continued in effect for the collection of
taxes due and for civil and criminal enforcement of the liability
for those taxes.
SECTION 3. This Act takes effect September 1, 2015.