SEC. 552. EXCISE TAX ON MEDICAL DEVICES.
9 (a) IN GENERAL.Chapter 31 of the Internal Rev10
enue Code of 1986 is amended by adding at the end the
11 following new subchapter:
12 Subchapter DMedical Devices
Sec. 4061. Medical devices.
13 SEC. 4061. MEDICAL DEVICES.
14 (a) IN GENERAL.There is hereby imposed on the
15 first taxable sale of any medical device a tax equal to 2.5
16 percent of the price for which so sold.
17 (b) FIRST TAXABLE SALE.For purposes of this
18 section
19 (1) IN GENERAL.The term first taxable
20 sale means the first sale, for a purpose other than
21 for resale, after production, manufacture, or impor22
tation.
(2) EXCEPTION FOR SALES AT RETAIL ESTAB2
LISHMENTS.Such term shall not include the sale
of any medical device if
(A) such sale is made at a retail estab5
lishment on terms which are available to the
general public, and
(B) such medical device is of a type (and
purchased in a quantity) which is purchased by
the general public.
(3) EXCEPTION FOR EXPORTS, ETC.Rules
similar to the rules of sections 4221 (other than
paragraphs (3), (4), (5), and (6) of subsection (a)
thereof) and 4222 shall apply for purposes of this
section. To the extent provided by the Secretary,
section 4222 may be extended to, and made applica16
ble with respect to, the exemption provided by para17
graph (2).
(4) SALES TO PATIENTS NOT TREATED AS RE19
SALES.If a medical device is sold for use in con20
nection with providing any health care service to an
individual, such sale shall not be treated as being for
the purpose of resale (even if such device is sold to
such individual).