Drugs and medical and therapeutic devices - legislative declaration - definitions

(a) (I) Durable medical equipment means equipment, including repair and replacement parts for such equipment, dispensed pursuant to a prescription order, that:

(A) Can withstand repeated use;

(B) Is primarily and customarily used to serve a medical purpose;

(C) Is generally not useful to a person in the absence of illness or injury; and

(D) Is not worn in or on the body.

(II) Durable medical equipment includes hospital beds, intravenous poles and pumps, trapeze bars, toileting aids, bath and shower aids, standing aids, adaptive car seats, communication devices, and any related accessories for such items.

(a.5) Incontinence products and diapers means absorbent cloth or disposable products worn by humans who are incapable of, or have difficulty, controlling their bladder or bowel movements.

(b) (I) Mobility enhancing equipment means equipment, including repair and replacement parts for such equipment, dispensed pursuant to a prescription order, that:

(A) Is primarily and customarily used to provide or increase the ability to move from one place to another;

(B) Is appropriate for use in a home, in a person's community, or in a motor vehicle;

(C) Is not generally used by persons with normal mobility; and

(D) Does not include any motor vehicle or equipment on a motor vehicle normally provided by a motor vehicle manufacturer.

(II) Mobility enhancing equipment includes wheelchairs and wheelchair components or accessories, walking aids such as crutches, canes, or walkers, grab bars, trapeze bars, lift chairs, patient lifts, motorized carts, scooters, controls that are installed on motor vehicles, and any related accessories for such items.

(b.5) Period products means consumer products used to manage menstruation.

(e) For purposes of subsections (1)(a)(I), (1)(b)(I), (2)(g), (2)(h), and (2)(i) of this section, prescription order means any order for a prescription that:

(I) (A) Is in writing, dated, and signed by a practitioner; or

(B) Is given orally by a practitioner and immediately reduced to writing by the pharmacist or pharmacy intern, or by a representative of a business licensed to sell items described in subsection (2)(g), (2)(h), (2)(i), or (2)(j) of this section so long as such prescription order is also followed by an electronic submission of the prescription order to the business; and

(II) Specifying the name and address of the person for whom an item described in subsection (2)(g), (2)(h), (2)(i), or (2)(j) of this section is prescribed and directions, if any, to be included with such item.

(2) The following are exempt from taxation under part 1 of this article 26:

(a) All sales of prescription drugs dispensed in accordance with a prescription by a practitioner or furnished by a practitioner as part of professional services provided to a patient or client;

(b) All sales of insulin in all its forms dispensed pursuant to the direction of a practitioner;

(c) All sales of glucose useable for treatment of insulin reactions;

(d) All sales of urine- and blood-testing kits and materials;

(e) All sales of insulin measuring and injecting devices, including hypodermic syringes and needles;

(m) (I) All sales of period products purchased on and after January 1, 2023.

(II) In accordance with section 39-21-304 (1), which requires each bill that creates a new tax expenditure to include a tax preference performance statement as part of a statutory legislative declaration, the general assembly hereby finds and declares that:

(A) The general legislative purpose of the exemption allowed by this subsection (2)(m) is to provide tax relief for certain individuals;

(B) The specific legislative purpose of the exemption allowed by this subsection (2)(m) is to increase the affordability of period products and to redress the inequitable burden that the imposition of sales tax places on millions of women in Colorado for whom such products are essential; and

(C) In order to allow the general assembly and the state auditor to measure the effectiveness of the exemption, the state auditor shall identify available data sources and estimate the savings that the exemption provides to taxpayers in Colorado for whom period products are essential during the state auditor's evaluation of the exemption pursuant to section 39-21-305.

(III) Notwithstanding section 39-21-304 (4), the exemption in this subsection

(2)(m) continues indefinitely.

(n) (I) All sales of incontinence products and diapers purchased on and after January 1, 2023.

(II) In accordance with section 39-21-304 (1), which requires each bill that creates a new tax expenditure to include a tax preference performance statement as part of a statutory legislative declaration, the general assembly hereby finds and declares that:

(A) The general legislative purpose of the exemption allowed by this subsection (2)(n) is to provide tax relief for certain individuals;

(B) The specific legislative purpose of the exemption allowed by this subsection (2)(n) is to increase the affordability of incontinence products and diapers and to redress the inequitable burden that the imposition of sales tax places on millions of parents, individuals caring for infants and young children, and other users of incontinence products in Colorado for whom such products are essential; and

(C) In order to allow the general assembly and the state auditor to measure the effectiveness of the credit, the state auditor shall identify available data sources and estimate the savings the exemption provides to taxpayers in Colorado for whom incontinence products and diapers are essential during the state auditor's evaluation of the exemption pursuant to section 39-21-305.

(III) Notwithstanding section 39-21-304 (4), the exemption in this subsection

(2)(n) continues indefinitely.

(3) The storage, use, or consumption of any item that is exempt from sales tax by operation of subsection (2) of this section is exempt from taxation under the provisions of part 2 of this article 26.