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TAXING TEEN TRAUMA

November 13, 2006

The Iowa Department of Revenue today posted a new policy letter ruling that the Zeno zit zapper, formally known as the "Zeno Acne Clearing Device," is subject to Iowa sales tax:

This device removes pimples by applying a controlled heat dose to a pimple by way of a metal pad. The pad is held on the pimple for two and a half minutes. When this is done two or three times within a 24 hour period, most pimples are eliminated. The device works by killing the bacteria which are inside the pimple.

You ask if sales of this device in Iowa would be taxable. The device is tangible personal property, and no exemption works to exclude its sale from the tax imposed on sales of tangible personal property in Iowa by § 423.2(1) of the 2005 Iowa Code Supplement. Subsection 423.3(60) of the 2005 Code Supplement excludes from tax “the sales price from the sale or rental of prescription drugs, durable medical equipment, mobility enhancing equipment, prosthetic devices, and other medical devices intended for human use or consumption.” However, a careful reading of the subsection reveals that the Zeno device is not included within the definition of any of the exempt drugs or devices. No other exemption is applicable to its circumstances, so Walgreen’s sales of the devices are taxable.

Good thing we've at least got that cleared up.

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