Did California treat a registered pharmacy as the consumer or retailer of contact lenses under section 6018?

Plain-English summary

The 1996 opinion treated registered pharmacies as retailers, not consumers, of contact lenses. It reasoned that section 6018 would have needed amendment to treat pharmacies as consumers of ophthalmic materials furnished in treating human eye conditions.

The official annotation records a later change: effective January 1, 1998, licensed pharmacists are consumers of replacement contact lenses. The historical opinion therefore should not be read as the current rule for those replacement lenses.

Common questions

How did the 1996 opinion classify registered pharmacies?

As retailers of contact lenses.

Does the official annotation report a later change?

Yes. It says licensed pharmacists became consumers of replacement contact lenses on January 1, 1998.

Should the 1996 conclusion be applied without checking current law?

No.

Citations and references

• California Revenue and Taxation Code § 6018
• Tax accounting manager's December 12, 1995 letter and apparent fax to program staff — question identified; full letter and fax record not reproduced in the official PDF
• Program Planning Manager Dennis Fox's January 19, 1996 response letter — receipt and concurrence stated; response letter and its analysis not reproduced in the official PDF
• Registered pharmacies' contact-lens sales and ophthalmic materials furnished in treating human eye conditions — transaction category described; underlying pharmacy, pharmacist, license, prescription, lens, patient, sale, and treatment records not reproduced in the official PDF
• Official Annotation 225.0086 collection-page amendment marker and note — Am. 99-2; identifies amendments to section 6018 and a January 1, 1998 operative date for licensed pharmacists as consumers of replacement contact lenses, but does not reproduce the amendment materials
• Possible later pharmacy tax treatment, returns, audits, assessments, appeals, or other outcomes after the advice — no follow-up records or final outcomes supplied in the official PDF or collection-page note

Source

• Annotated Legal Opinions collection: https://cdtfa.ca.gov/taxes-and-fees/annotations-menu.htm
• Annotation page: https://cdtfa.ca.gov/lawguides/vol2/suta/225-0000-all.html
• Original supporting opinion: https://cdtfa.ca.gov/lawguides/annotations/225-0086.pdf

Original ruling text

225.0086

STATE OF CALIFORNIA

STATE BOARD OF EQUALIZATION

JOHAN KLEHS
First District, Hayward

LEGAL DIVISION - MIC 82
450 N STREET, SACRAMENTO, CALIFORNIA
(P.O. BOX 942879, SACRAMENTO, CALIFORNIA 94279-0082)

DEAN ANDAL
Second District, Stockton
ERNEST J. DRONENBURG, JR.
Third District, San Diego

Telephone No.: (916) 324-3828
Fax No: (916) 323-3387

BRAD SHERMAN
Fourth District, Los Angeles
KATHLEEN CONNELL
Controller, Sacramento

February 21, 1996

────────
BURTON W. OLIVER
Executive Director

Mr. [B], Esq.
Tax Accounting Manager
[L]
XXX --- --P.O. Box XXXX
--- ---, California XXXXX
RE:

S- -- XX-XXXXXX
Pharmacies
Sale of Contact Lenses

Dear Mr. [B]:
I am responding to your letter dated December 12, 1995 to the Legal Division. You ask for advice regarding the sale of contact lenses by pharmacies. You apparently faxed a copy of this letter to the program staff also. We have received a copy of Program Planning Manager Dennis Fox’s letter response dated January 19, 1996 and concur with his analysis. Revenue and Taxation Code section 6018 would have to be amended for registered pharmacies to be treated as consumers of ophthalmic materials furnished in the treatment of human eye conditions. I hope the above discussion has answered your question. If you need anything further, please do not hesitate to write again. Sincerely,

John L. Waid
Senior Staff Counsel
JLW:sr
cc:

--- District Administrator - --