SB240 Alabama 2013 Session

Updated Feb 25, 2026

Summary

Primary Sponsor: William “Bill” M. BeasleySenator
Democrat
Session: Regular Session 2013
Title: Sales and use tax, durable medical equipment, prosthetics and orthotics, and certain medical supplies, exempt when covered and paid by third party
Summary: SB240 would exempt from Alabama sales and use taxes certain durable medical equipment and related medical supplies when sold with a valid prescription and billed to a third-party payer, effective October 1, 2014.
What This Bill Does
It creates a sales tax exemption for items used to treat illness or injury or to replace a limb or body part, including durable medical equipment, prosthetic/orthotic devices, and Medicare-defined medical supplies, when purchased under a prescription and billed to a third party. The exemption covers repair parts, disposable supplies, medical oxygen equipment, catheters, ostomy supplies, and specialized wound care products. The exemption is in addition to existing exemptions and does not repeal other laws, with the new effective date stated.

Who It Affects
Patients and individuals who need DME, prosthetics/orthotics, or Medicare-defined medical supplies and obtain them under a valid prescription billed to a third-party payer, who would not pay state or local sales tax on these items.
Medical supply vendors and retailers that sell these exempt items under prescription and that bill third-party payers, as these transactions would be exempt from state, county, and municipal sales taxes.

Key Provisions
Exempts from state, county, and municipal sales and use taxes the sale of durable medical equipment, prosthetic and orthotic devices, and medical supplies defined under Medicare when sold pursuant to a valid prescription and billed to a third-party payer.
Includes repair parts, disposable or single-patient-use supplies, medical oxygen and related equipment, catheters and ostomy supplies, and specialized wound care products that are covered by and billed to a third party.
Provides that the exemptions are supplemental and do not repeal any other laws not in direct conflict, and sets the effective date at October 1, 2014.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Health