TAX POLICY CLIENT ALERT: Medical Excise Tax: Avoid Surprises, Seek Answers Now

    View Authors 3 June 2011
    Beginning January 1, 2013, manufacturers, producers and importers of certain medical devices will be subject to an excise tax equal to 2.3 percent of the price for which the product is sold. The statutory language for the tax leaves open a variety of important questions, such as the breadth of the definition of “taxable medical device,” the scope of the exemption for products generally sold to the public at retail, the deductibility of the tax and the tax base when the producer or importer is also the wholesaler or retailer. Therefore, it is imperative for manufacturers, importers, distributors and retailers of products potentially subject to the excise tax to become involved in the regulatory process.