House Supports Prosthetic Devices Exemption

December 16, 2019

Chamber-backed legislation to clarify the taxability of medically necessary implanted prosthetic devices was passed by the State House last week. Long considered exempt, certain prosthetic devices seemed to become taxable in late 2018. The Chamber played a leadership role in working to reach agreement on how to clearly treat this type of medical equipment for tax purposes. Through the issuance of formal Departmental guidance and prospective legislation, taxpayers will be provided the clarification they need to operate effectively. 

While this legislation will directly impact outpatient surgery centers across Michigan, it is also important to note that it has broader impacts on all employers. The cost of healthcare is already high, and businesses everywhere struggle with this growing expense. Nonsensical tax policy that drives the cost of healthcare even higher only exacerbates this problem.  

For more information, contact Dan Papineau at dpapineau@michamber.com