Legislation to clarify the taxability of medically necessary, implantable prosthetic devises made its way to the Governor’s desk last week. This is good news for several surgery centers across the state who began seeing tax added to their vendor’s invoices on the purchase of certain prosthetic devices — tax that was never included as part of the purchase of these items in the past.
What happened? When Treasury was asked about the tax on certain prosthetic devices, they claimed these items were always taxable, and tax was indeed owed. After surveying numerous surgery centers to see if any of them had been audited and treated these items as exempt in the past, it became clear that the Department was not operating under the position that these items were taxable. All the surgery centers that were audited without paying the tax passed their audit free and clear.
The Michigan Chamber is fierce advocate for consistent tax policy and health care cost containment and played a key role in the passage of this legislation – House Bills 4203 and 4204.
For more information, contact Dan Papineau at dpapineau@michamber.com.