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Last week, the Alabama House of Representatives passed HB176, a bill introduced by state Rep. Mark Shirey, R-District 100, which would exempt optical aids, including eyeglasses and contact lenses, from Alabama sales tax. The bill had previously passed out of the House Ways and Means Education Committee in February.
Shirey’s bill strikes the language from the Alabama sales tax code which provides for the collection of state sales tax on the sale of “ophthalmic materials, including lenses, frames, eyeglasses, contact lenses, and other therapeutic optic devices.” Instead, the gross proceeds of optical aid sales would be exempted from all state sales and use tax under HB176.
The bill defines optical aids as “eyeglasses, contact lenses, or other instruments or devices that may aid or correct human vision and that have been prescribed by a physician or optometrist licensed by a state, country, or province,” with “eyeglasses” including both prescription lenses and frames.
Although the bill would exempt optical aids from state sales tax, it does not undo or prevent any county or municipality from instituting a sales or use tax on such products.
“Alabama is one of only six states that tax eyeglasses and contact lenses. Out of the states that do tax contacts and glasses some of them only tax them at half rate,” Shirey explained at February’s House Ways and Means Education Committee meeting. “[Centers for Medicare and Medicaid Services] classifies eyeglasses as prescription medical devices, and I am not aware of any other medical device that Alabama taxes. This bill would help people of all ages in your district.”
During that meeting, Shirey also noted that seniors are particularly affected by the sales tax on optical aids due to their disproportionate need for eyeglasses and contact lenses.
HB176 quickly and unanimously passed the House floor last Tuesday without discussion. The bill now awaits consideration by the Alabama Senate Committee on Finance and Taxation Education.
