SB 5218 — Providing a sales and use tax exemption for complex rehabilitation technology products.

S-1799.1S-0203.2 SUBSTITUTE SENATE BILL 5218 State of Washington 68th Legislature 2023 Regular Session By Senate Ways & Means (originally sponsored by Senators Padden, Mullet, and Torres)Torres ANRead ACTfirst Relatingtime to01/10/23. providing a sales and use tax exemption for mobility enhancing equipment for use by or for a complex needs patient;

addingReferred ato newCommittee sectionon toHealth chapter& 82.08Long RCW;Term Care.

addingAN ACT Relating to providing a newsales sectionand touse chaptertax 82.12exemption RCW;for complex rehabilitation technology products;

amending RCW 82.08.0283 and 82.12.0277;

NEW SECTION.

ARCW new82.08.0283 sectionand is2007 addedc to6 chapters 82.081101 RCWare each amended to read as follows:

(1) The tax levied by RCW 82.08.020 doesshall not apply to thesales saleof: of mobility enhancing equipment for use by or for a complex needs patient to meet the user's specific and unique medical, physical, and functional needs and capacities for basic activities when medically necessary to prevent hospitalization or institutionalization of the complex needs patient.

(2)(a) InProsthetic orderdevices toprescribed, claimfitted, anor exemptionfurnished underfor thisan section,individual theby purchasera mustperson providelicensed under the sellerlaws withof anthis exemptionstate certificateto inprescribe, afit, formor andfurnish mannerprosthetic prescribeddevices, byand the department.components of such prosthetic devices;

The(b) sellerMedicines mustof retainmineral, aanimal, copyand ofbotanical theorigin certificateprescribed, foradministered, dispensed, or used in the seller'streatment files.of an individual by a person licensed under chapter 18.36A RCW;

(3)((and)) For(c) theMedically purposesprescribed ofoxygen, thisincluding, section,but "complexnot needslimited patient"to, hasoxygen theconcentrator samesystems, meaningoxygen asenricher insystems, liquid oxygen systems, and gaseous, bottled oxygen systems prescribed for an individual by a person licensed under chapter 18.57 or 18.71 RCW 74.09.557.for use in the medical treatment of that individual;

and (d) Medically prescribed complex rehabilitation technology products and the components of these products.

1 SSBSB 5218 NEW(2) SECTION.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, other than as specified in subsection (1)(c) of this section, or mobility enhancing equipment.

(4) The definitions in this subsection apply throughout this section.

(a)(i) "Complex rehabilitation technology products" means wheelchairs and seating systems that:

(A) Are individually configured for people to meet their specific and unique medical, physical, and functional needs and capacities for basic activities as medically necessary to prevent hospitalization or institutionalization of a complex needs patient;

(B) Are primarily used to serve a medical purpose and generally not useful to a person in the absence of an illness or injury;

and (C) Require certain services to allow for appropriate design, configuration, and use of the item, including patient evaluation and equipment fitting and configuration.

(ii) Medical equipment covered in whole, or in part, by medicaid, the children's health insurance program, or a state-only funded health care program and identified in a coverage table in a complex rehabilitation technology billing guide, or a successor billing guide or publication addressing coverage of complex rehabilitation technology products, published by the Washington state health care authority is presumed to be a complex rehabilitation technology product for the purpose of the exemption under this section.

(b) "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))) (c) "Durable medical equipment" means equipment, including repair and replacement parts for durable medical equipment that:

(i) Can withstand repeated use;

p.

2 SB 5218 (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) Is not worn in or on the body.

(((c))) (d) "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))) (e) The terms "durable medical equipment" and "mobility enhancing equipment" are mutually exclusive.

ARCW new82.12.0277 sectionand is2007 addedc to6 chapters 82.121102 RCWare each amended to read as follows:

(1) ThisThe chapterprovisions does not apply to the use of mobilitythis enhancingchapter equipmentshall fornot useapply byin orrespect for a complex needs patient to meet the user'suse specificof: and unique medical, physical, and functional needs and capacities for basic activities when medically necessary to prevent hospitalization or institutionalization of the complex needs patient.

(2)(a) ForProsthetic devices prescribed, fitted, or furnished for an individual by a person licensed under the purposeslaws of this section,state "complexto needsprescribe, patient"fit, hasor thefurnish sameprosthetic meaningdevices, asand inthe RCWcomponents 74.09.557.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;

and (d) Medically prescribed complex rehabilitation technology products and the components of these products.