The Colorado Department of Revenue ("Department") recently ruled that sales of telephones for the hearing impaired were exempt as durable medical equipment. Colorado exempts durable medical equipment sold under prescription. "Durable medical equipment" is equipment that (1) can withstand repeated use, (2) serves a medical purpose, (3) is not useful absent illness or injury, and (4) is not worn in or on the body.
In the Department's ruling, patients could only get phones under prescription. The phones withstood repeated use and enabled phone conversations for the hearing impaired. Those without hearing loss had no use for the devices. As a result, the Department determined the phones qualified as exempt durable medical equipment.