Section R15-5-183. Exempt Sales to Health Organizations

A.      Gross receipts from the sale of tangible personal property to qualifying hospitals, qualifying health care organizations, rehabilitation programs for mentally or physically handi- capped persons, and qualifying community health centers are exempt from tax if such purchases are exempt from tax pursu- ant to statutory provisions.

B.       The Department may, upon review of the written request and any other information requested by the Department to make a proper determination, provide an Exemption Letter to organi- zation meeting the statutory criteria. The Exemption Letter shall be valid for a period of 12 months from the first day of the month following the issue date of the Exemption Letter unless the organization’s tax exempt status changes prior to the end of the 12-month period, or the organization misrepre- sented or omitted material information in its exemption request.

C.      Qualifying hospitals, qualifying health care organizations, rehabilitation programs for mentally or physically handi- capped persons, and qualifying community health centers shall annually submit to the Department a written request for an Exemption Letter. The request shall be submitted at least 30 days prior to the first day of the exemption period. For pur- poses of this rule, “exemption period” means the 12-month period beginning on the first day of the month following the issue date of the Exemption Letter or the 12-month period requested by the organization.

1.        Qualifying hospitals shall attach to their annual exemp- tion request a copy of their current license issued by the Department of Health Services.

2.        Qualifying health care organizations shall attach to their exemption request letter the statutorily required annual financial audit and a copy of their Internal Revenue Code 501(c) recognition unless the Department has previously received a copy of this recognition.

3.        Rehabilitation programs for mentally or physically handi- capped persons shall attach to their exemption request a copy of their Internal Revenue Code 501(c)(3) recogni- tion unless the Department has previously received a copy of this recognition.

4.        Qualifying community health centers shall attach to their exemption request documentation supporting the statu- tory criteria and a copy of their Internal Revenue Code 501(c)(3) recognition unless the Department has previ- ously received a copy of this recognition.

Historical Note

Renumbered from R15-5-1821 and amended effective August 9, 1993 (Supp. 93-3). Amended effective April

21, 1995 (Supp. 95-2).