SOUTH CAROLINA: S&U Tax: Sale of Radioactive Implant Seeds for Cancer Treatment Exempt

Sales of radioactive implant seeds to hospitals, medical centers, and medical practitioners for use in the treatment of prostate cancer are sales of therapeutic radiopharmaceuticals and are, as a consequence, exempt from South Carolina sales and use tax. Moreover, associated procedure fees charged for each radioactive seed implant procedure performed by a hospital, medical center, or medical practitioner are also exempt. A “radioactive seed implant procedure,” also known as “brachytherapy,” is a technique used to implant radioactive source seeds directly into a cancerous tumor in order to treat a patient who has prostate cancer. Sales of therapeutic radiopharmaceuticals to doctors, nursing homes, hospitals, or similar institutions for use in the treatment of cancer, lymphoma, leukemia, or related diseases are retail sales exempt from sales and use tax. (Private Letter Ruling 05-1, South Carolina Department of Revenue, January 19, 2005.)

Copyright CCH Incorporated: Federal and State Tax Feb 8, 2005