A ruling clarifies that sales of medical devices to physicians and hospitals for resale to patients are subject to Indiana sales and use tax, unless the physician or hospital issues the seller a resale certificate. A resale is not exempt even if the sale is only allowed by prescription. Medical devices include durable medical equipment, prosthetic devices, artificial limbs and orthopedic devices. Sales of kits containing medical devices, and the instruments and supplies needed to implant the devices, are not taxable retail transactions if (1) the kits are sold for a single price and (2) the purchase price or selling price of the exempt medical items exceeds 50% of the total purchase price or selling price of the kit. When a sale of a medical kit is not a retail transaction, tangible personal property provided in the medical kits may create use tax liability for the manufacturer or distributor.