HB131 Summary

• Health care providers must obtain a certificate of exemption from the Department of Revenue beginning September 1, 2024, to make sales tax exempt purchases of durable medical equipment and medical supplies covered by Medicare, Medicaid, or health benefit plans.

• Exempts from state, county, and municipal sales, use, and rental/leasing taxes items used for treating illness or injury or replacing body parts, including durable medical equipment, medical oxygen, prosthetic devices, and supplies such as catheters and ostomy bags.

• Certificates of exemption are valid for one year and must be renewed annually; providers who fail to obtain or renew certificates cannot make tax exempt purchases after expiration.

• Intentional misuse of a certificate of exemption subjects violators to civil penalties of at least $2,000 or twice the tax due, whichever is greater, and may result in a bar from using certificates for up to two years.

• The act became effective immediately upon passage (House passed February 22, 2024; Senate passed May 8, 2024).