731. EXEMPTION OF DRUGS, MEDICINES AND MEDICAL DEVICES PRESCRIBED FOR HUMAN USE.

There are specifically exempted from the provisions of this Chapter and from the computation of the amount of tax imposed by it, nutritional supplements (as defined by rule adopted by the Department of Revenue of the State of South Dakota) if dispensed by a chiropractor, all drugs and medicines as those terms are defined by SDCL 36-11-2, and medical devices as that term is defined below to the extent used by humans, when such drugs, medicines or medical devices are prescribed by prescription, dispensed or administered by a physician, chiropractor, optometrist, dentist or podiatrist. “Medical device” as used in this Section and Section 825 means an instrument, apparatus, implement, machine, contrivance, implant, in vitro reagent or other similar or related article, including any component, part or accessory, which is:

1. Intended for use in the diagnosis of disease or other conditions, or in the cure, mitigation, treatment, detection or prevention or illness or disease, or in the prevention of death; or
2. Intended to affect the structure or any function of the human body; or
3. Intended for use in the mobility of persons.