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Do nursing homes and not-for-profit hospitals qualify for a sales tax exemption?

Answer #722 -- ( Published 05/15/2008 03:47 PM | Updated 07/12/2017 10:39 AM )

Do nursing homes and not-for-profit hospitals qualify for a sales tax exemption?

Not-for-profit hospitals and not-for-profit nursing homes that qualify as exclusively charitable institutions are exempt from sales and use tax on purchases and also are not required to collect sales tax when selling food or medicine to their patients. Hospital dining facilities that are not open to the general public are also exempt. However, a hospital or hospital auxiliary incurs sales tax liability when selling products such as candy, chewing gum, tobacco products, and razor blades since these items are not necessary for basic hospital service and place the hospital in competition with community businesses.

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