Diabetic finally gets tax relief from Wal-Mart

The Post and Courier
Friday, January 9, 2009


Henry Hutchmacher Jr.'s 11-year-old daughter has diabetes. Every day, she goes through a handful of alcohol swabs, lancets and glucose strips.

Those diabetic supplies are exempt from sales tax, according to state law, yet Hutch- macher said he had a hard time convincing the Wal-Mart in Goose Creek to give the break to his daughter, Ashley.

Most of what a diabetic patient needs can be prescribed, said Wayne Weart, professor of pharmacy and family medicine at the Medical University of South Carolina, including items that do not necessarily require a prescription, such as alcohol swabs and glucose strips.

A patient may seek a prescription for items that don't require one in order to receive coverage under an insurance plan, he said. Another benefit is that all prescriptions are exempt from sales tax.

Hutchmacher pointed to the title, chapter and section of the law that proclaims a sales tax exemption for "diabetic supplies sold to diabetics under the authorization and direction of a physician." It doesn't say prescription.

Hutchmacher has a letter from his daughter's endocrinologist explaining that she has diabetes and lists her necessary supplies. That letter, he said, should constitute "authorization and direction of a physician."

The S.C. Department of Revenue agreed with Hutchmacher's interpretation of the law. Public Information Director Adrienne Fairwell wrote in an e-mail, "A prescription is not required, just some written authorization from a doctor."

Twice, Hutchmacher presented Ashley's letter from her endocrinologist to Wal-Mart's pharmacist and management, he said, but he still did not receive the exemption.

"I gave a copy of the tax code to two managers. I've called 1-800-Walmart and never heard back," he said. "After numerous times of going down there, I threatened media intervention."

On Dec. 17, Chris Neeley, a Columbia-based spokesman for Wal-Mart, said, "South Carolina exempts these items only when purchased with a prescription."

Target and CVS honored the sales tax exemption with the letter and did not need a prescription, Hutchmacher said. Target spokesperson Michaela Gleason confirmed, "You do not need a prescription from a doctor to get the sales tax exemption."

On Thursday, following more inquiries from The Post and Courier, Wal-Mart changed its position: "A letter is acceptable as long as it is 'under the authorization and direction of a physician.' Wal-Mart has always understood that to mean a 'prescription,' since that is the formal method or requesting pharmaceuticals," Neeley said.

"Wal-Mart apologizes to the customer for applying the law too strictly. We have immediately changed the way we handle tax exemptions on diabetic supplies at our Goose Creek store. Additionally, every store manager and pharmacy manager in the state of South Carolina is being notified (Thursday) of this opinion."

Neeley also said he has appealed to the state Legislature to make a technical correction to the statute to clarify the law.

The amount of money in question is not large, Hutchmacher said. A 50-count box of test strips can range in price from $20 to $60, depending on the brand and type of glucose meter.

With sales tax in Berkeley County at 7 percent, savings can range from $1.40 to $4.20. People with diabetes who monitor their glucose might test their blood between three and seven times a day.

It's the principle that sticks in his craw. "This is a lifetime condition for my daughter," he said.

Reach Jill Coley at 937-5719 or jcoley@postandcourier.com.



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