ST 1989-03 - Human Organs and Tissue - February 1, 1989
Updated November, 2004
The transfer of human organs, bone, tissue, blood and blood
products, for the purpose of injecting, transfusing, or
transplanting into a human body, are not transactions subject
to Ohio sales and use taxes.
Section 2108.11 Ohio Revised Code declares the transfer of
these products for such purposes "not to be a sale" but,
rather, the provision of a "service." Moreover, federal law,
42 U.S.C. 274e, prohibits the transfer of human organs for
transplantation "for valuable consideration." However, this
law does allow payment of reasonable expenses associated with
the removal, transportation, preservation, etc. of the
The sale or purchase of human hair, manufactured items,
animal organs, and other products not of human origin for
transplantation or implantation is not covered by these
provisions and is subject to the sales and use tax law.
Tax is due on any of these items sold to physicians or
for-profit hospitals, since these persons are providing
medical services and are the "consumers" of all tangible
personal property purchased by them for use in treating
patients. For example, a physician purchases an artificial
joint and surgically implants it in the patient. The
physician must pay sales or use tax on the artificial joint
because the physician is "consuming" it (for tax purposes) in
providing medical services.
If you have any questions regarding this matter, please
contact our Taxpayer Service Center at 1-888-405-4039, or
e-mail us through our website at tax.ohio.gov.
OHIO RELAY SERVICES FOR
THE HEARING OR SPEECH IMPAIRED