MAMES - Mississippi Association of Medical Equipment Suppliers MAMES
MAMES - Mississippi Association of Medical Equipment Suppliers

Mississippi Association of Medical Equipment Suppliers


Event: HB996 at State Capitol MS
Start: 02/26/2013
End: 02/28/2013

HB 996 

WILL DIE IF NO ONE CALLS in AM by 2/28/2013 8:30am

Sales tax; exempt sales of certain home medical equipment and supplies when paid for under insurance policy or plan.·        In 2009 the MS Legislature passed HB 193, which became law and exempted durable medical equipment (DME) prescribed by a licensed physician from sales when paid for, in whole or in part, by Medicare or Medicaid Insurance.o   This was based on the Legislature’s understanding that:§  Medicare nor Medicaid would pay only the allowable amount for the DME under the insurance provisions and had no authority to pay any additional sales taxes;  §  Therefore, DME companies were not sending in to the state any sales tax on such sales, since it was limitedly collected.§  Our MS Dept. of Revenue began auditing DME companies and said they were still liable.  As a result, the DME company had to pull out of its own pocket such sales taxes when audited.§  The Legislature acted with HB 193, thereby placing into law the principle that when a seller of DME prescribed by law licensed physician and paid for by insurance having no authority to pay any sales tax or any money above the allowable amount under the insurance provisions, then the seller should NOT have to pay out of its own pocket, and such sale is thereby exempt. ·        In 2013, HB 996’s purpose is to extend that principle to third party  insurance, including worker compensation insurance, as a result of the MS Dept. of Revenue in the past few years having now begun auditing DME companies on these sales and holding
Files: HB996.pdf


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