Sales of wigs are subject to sales and use tax in Tennessee. Wigs or hair pieces purchased in connection with medical treatment do not qualify as exempt prosthetics devices.
A prosthetic device is defined as a replacement, corrective, or supportive device including repair and replacement parts for the replacement, corrective, or supportive device worn on or in the body to:
- Artificially replace a missing portion of the body;
- Prevent or correct physical deformity or malfunction; or
- Support a weak or deformed portion of the body.
A device is commonly defined as “a piece of equipment or a mechanism designed to serve a special purpose or perform a special function.” A wig is not a device as it is not a piece of equipment nor is it a mechanism. A wig serves an aesthetic purpose.
Examples of exempt prosthetic devices include:
- Artificial arms and legs;
- Necessary items worn to wear an artificial limb;
- Hearing aids;
- Dental prostheses; and
- Insulin pumps.
Reference: Tenn. Code Ann. §§ 67-6-102 (76) and 67-6-314. Device, (2021), https://www.merriam-webster.com/dictionary/device (last visited Feb 4, 2021).