2022 Colorado Code
Title 39 - Taxation
Article 26 - Sales and Use Tax
Part 7 - Sales and Use Tax Exemptions
§ 39-26-717. Drugs and Medical and Therapeutic Devices - Definitions

1. As used in this section, unless the context otherwise requires:
   1. 1. "Durable medical equipment" means equipment, including repair and replacement parts for such equipment, dispensed pursuant to a prescription order, that:
         1. Can withstand repeated use;
         2. Is primarily and customarily used to serve a medical purpose;
         3. Is generally not useful to a person in the absence of illness or injury; and
         4. Is not worn in or on the body.

      2. "Durable medical equipment" includes hospital beds, intravenous poles and pumps, trapeze bars, toileting aids, bath and shower aids, standing aids, adaptive car seats, communication devices, and any related accessories for such items.

   2. 1. "Mobility enhancing equipment" means equipment, including repair and replacement parts for such equipment, dispensed pursuant to a prescription order, that:
         1. Is primarily and customarily used to provide or increase the ability to move from one place to another;
         2. Is appropriate for use in a home, in a person's community, or in a motor vehicle;
         3. Is not generally used by persons with normal mobility; and
         4. Does not include any motor vehicle or equipment on a motor vehicle normally provided by a motor vehicle manufacturer.

      2. "Mobility enhancing equipment" includes wheelchairs and wheelchair components or accessories, walking aids such as crutches, canes, or walkers, grab bars, trapeze bars, lift chairs, patient lifts, motorized carts, scooters, controls that are installed on motor vehicles, and any related accessories for such items.

   3. "Practitioner" has the same meaning as set forth in section 12-280-103 (40).
   4. "Prescription" has the same meaning as set forth in section 12-280-103 (41).
   5. For purposes of subsections (1)(a)(I), (1)(b)(I), (2)(g), (2)(h), and (2)(i) of this section, "prescription order" means any order for a prescription that:
      1. 1. Is in writing, dated, and signed by a practitioner; or
         2. Is given orally by a practitioner and immediately reduced to writing by the pharmacist or pharmacy intern, or by a representative of a business licensed to sell items described in subsection (2)(g), (2)(h), (2)(i), or (2)(j) of this section so long as such prescription order is also followed by an electronic submission of the prescription order to the business; and

      2. Specifying the name and address of the person for whom an item described in subsection (2)(g), (2)(h), (2)(i), or (2)(j) of this section is prescribed and directions, if any, to be included with such item.

2. The following are exempt from taxation under part 1 of this article 26:
   1. All sales of prescription drugs dispensed in accordance with a prescription by a practitioner or furnished by a practitioner as part of professional services provided to a patient or client;
   2. All sales of insulin in all its forms dispensed pursuant to the direction of a practitioner;
   3. All sales of glucose useable for treatment of insulin reactions;
   4. All sales of urine- and blood-testing kits and materials;
   5. All sales of insulin measuring and injecting devices, including hypodermic syringes and needles;
   6. All sales of prosthetic devices;
   7. All sales of oxygen delivery equipment and disposable medical supplies related to oxygen delivery dispensed pursuant to a prescription order;
   8. All sales of medical, feeding, and disposable supplies, including any related accessories, for incontinence, infusion, enteral nutrition, ostomy, urology, diabetic care, and wound care dispensed pursuant to a prescription order;
   9. All sales of equipment and related accessories for sleep therapy, inhalation therapy, and electrotherapy dispensed pursuant to a prescription order;
   10. All sales of durable medical equipment and mobility enhancing equipment;
   11. All sales of nonprescription drugs or materials when furnished by a practitioner as part of professional services provided to a patient; and
   12. All sales of corrective eyeglasses, contact lenses, or hearing aids.

3. The storage, use, or consumption of any item that is exempt from sales tax by operation of subsection (2) of this section is exempt from taxation under the provisions of part 2 of this article 26.

Source: L. 2004: Entire part added with relocations, p. 1034, § 2, effective July 1. L. 2011: (1)(a) and (1)(b) amended and (3) added, (SB 11-263), ch. 278, p. 1247, § 1, effective July 1; entire section amended, (HB 11-1091), ch. 235, p. 1011, § 1, effective August 10. L. 2016: (1)(g)(II), (1)(h)(II), (1)(i)(II), (2)(a)(III), and (2)(b)(III) amended, (SB 16-158), ch. 204, p. 730, § 24, effective August 10. L. 2018: Entire section R&RE, (SB 18-129), ch. 128, p. 847, § 2, effective August 8. L. 2019: (1)(c) and (1)(d) amended, (HB 19-1172), ch. 136, p. 1732, § 257, effective October 1. L. 2021: (3) added, (HB 21-1177), ch. 55, p. 229, § 3, effective September 7.

1. The provisions of this section are similar to several former provisions of § 39-26-114 as they existed prior to 2004. For a detailed comparison, see the comparative tables located in the back of the index.
2. Amendments to provisions of subsection (1) by House Bill 11-1091 and Senate Bill 11-263 were harmonized.

Cross references: (1) For the legislative declaration in SB 16-158, see section 1 of chapter 204, Session Laws of Colorado 2016.

(2) For the legislative declaration in SB 18-129, see section 1 of chapter 128, Session Laws of Colorado 2018.