N.Y. Comp. Codes R. & Regs. tit. 20 § 528.5

Current through Register Vol. 46, No. 45, November 2, 2024

Section 528.5 - Prosthetic aids

Tax Law, § 1115[a][4] and [g]

(a)Exemption.

Prosthetic aids, hearing aids, eyeglasses and artificial devices and component parts thereof, purchased to correct or alleviate physical incapacity in human beings are exempt from the tax.

(b)Qualifications.

(1) In order to qualify as a prosthetic aid, a hearing aid, eyeglasses or an artificial device, the property must either completely or partially replace a missing body part or the function of a permanently inoperative or permanently malfunctioning body part and must be primarily and customarily used for such purposes and not be generally useful in the absence of illness, injury or physical incapacity.

Example 1:

Artificial hands, arms, legs, false teeth, etc. are exempt.

Example 2:

Breast forms for post-mastectomy patients are exempt from tax. Garments with permanently built-in breast forms intended for use by post-mastectomy patients are also exempt as a prosthesis. However, brassieres worn with breast forms are not exempt.

Example 3:

Cardiac pacemakers are exempt.

Example 4:

A crown which is permanently attached to a tooth by a dentist is exempt.

Example 5:

Sound amplification devices for hard-of-hearing people used with telephones or television sets are exempt.

Example 6:

Specialized equipment used by the hearing impaired that converts teletype signals into telephone signals and telephone signals into teletype signals and thus enables a hearing impaired person to communicate by telephone, are exempt.

Example 7:

Items installed on motor vehicles to make them adaptable for use by handicapped persons are exempt. Such items may include special controls for paralytics or amputees and automotive lifts designed for the use of handicapped individuals for entry into motor vehicles.

Example 8:

Guide dogs for the blind are exempt.

Example 9:

Braille typewriters are exempt.

Example 10:

A device (commonly known as an Optical Tactile Converter) which converts standard printing into various impulses that represent alphabetic and numeric characters which a blind person can feel with his hand and thereby read standard print is exempt.

Example 11:

Devices for installation of TV sets for receiving closed captioned programs are exempt.

Example 12:

Alarms and flashing lights are not exempt.

Example 13:

Nonprescription eyeglasses, nonprescription sunglasses, and noncorrective contact lenses are not exempt.

(2) Parts, special attachments, special lettering, etc., that are added to or attached to tangible personal property, such as appliances, so that a handicapped person can use them are exempt. If tangible personal property is sold with special controls, lettering or devices, and the additional charge for the added features is separately stated on the bill for the tangible personal property, that portion of the sales receipts attributable to the added features is exempt. In determining whether the extra amount charged for the special controls, lettering or devices is reasonable, like items exclusive of the added features should be compared with the same item with the added features.

Example 14:

If a TV is sold with a closed captioned device built in, the portion of the price attributable to the closed captioned device, if separately stated on the bill, can be deducted from the selling price before computing the tax.

Example 15:

That portion of the price of braille books and braille games which is attributable to those features of the books and games that enable the affected person to use them, if separately stated on the bill, is excluded from the amount upon which the sales tax is computed. In determining the reasonableness of the amount of the exclusion, like items must be compared, such as, a comparison of the price of a hard cover braille edition of a book with the same hard cover edition of a nonbraille book.

Example 16:

Calculators which contain talking devices that are intended for the use of blind people are subject to tax. However, that portion of the price of the calculator attributable to the talking device is exempt from tax, if separately stated on the bill for the calculator.

(c)Replacement parts.

(1) Replacement parts for prosthetic aids, hearing aids, eyeglasses and artificial devices must be identifiable as such at the time the retail sale is made. If the replacement parts are not identifiable parts for prosthetic aids, the purchaser must pay the tax at the time of purchase. The purchaser may apply to the Sales Tax Bureau for a refund of the tax paid provided he can show that the replacement parts were used on exempt prosthetic aids.

Example 1:

Batteries for hearing aids which are clearly labeled as such by the manufacturer are exempt replacement parts.

(2) Supplies used in conjunction with prosthetic aids, hearing aids, eyeglasses and artificial devices are not exempt from the tax.

Example 2:

Lens tissue for cleaning glasses and cushioned nose pads for glasses are taxable supplies.

Example 3:

Paper that may be used to produce hard copy communication that is used in conjunction with the communication devices described in example 6 of paragraph (1) of subdivision (b) is a taxable supply.

Example 4:

Dog food purchased for guide dogs for the blind is a taxable supply.

(d)Servicing and repairing.

Receipts from installing, maintaining, servicing and repairing prosthetic aids, hearing aids, eyeglasses and artificial devices are exempt from the tax imposed by paragraph (3) of subdivision (c) of section 1105 of the Tax Law, if the items upon which such services were performed are exempt. If tangible personal property of the sort described in paragraph (2) of subdivision (b) of this section is repaired, maintained, or serviced, only that portion of the charge attributable to the features added for the use of the handicapped is exempt from the tax, and only if the charge is separately stated on the service bill.

N.Y. Comp. Codes R. & Regs. Tit. 20 § 528.5