Many long term care facilities and other healthcare providers in New York State are spending thousands of dollars of sales tax on products and services that are exempt.

According to Jonathan Gewirtz, a tax refund specialist, his clients have saved over $1.5 million in tax overcharges. “Many nursing homes are paying sales tax on utility services and they are entitled to a refund,” says Mr. Gewirtz. “One of my clients has saved $90,000 over the last three years. Another is saving over $10,000 annually.”

Other areas that nursing homes should be looking at are certain medical items, such as adult diapers, which are now considered clothing, according to a 2006 New York law, and therefore exempt from sales tax. These laws vary from state to state so it is important to speak to a tax professional for assistance.