Nebulizers

From the 2024 DOR Tax Exemption Study

82.08.803; 82.12.803 - Nebulizers Description A nebulizer is a device that converts a liquid medication into a mist the patient inhales. Nebulizers prescribed for human use by a physician are exempt from sales and use taxes. The exemption includes repair and replacement parts for nebulizers, as well as labor and service charges for cleaning, repairing, etc. Sellers must collect the sales tax, and the buyer must apply to the department for a refund. Purpose Reduces the cost of nebulizers. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.479 $0.497 $0.515 $0.533 Local Taxes $0.215 $0.224 $0.232 $0.240 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.456 $0.515 $0.533 Local Taxes $0.000 $0.205 $0.232 $0.240 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate mirrors the sales taxable activity growth rate reflected in the Economic and Revenue Forecast Council's March 2023 forecast. - Local revenue estimates use the statewide average local sales and use