Is an optical scanning device called 'An Open Book,' sold exclusively to visually impaired individuals to scan and read aloud printed items like bills and recipes, exempt from sales tax as a prosthetic aid?

Subject

Issue raised by Petitioner, Gary Petschauer, is whether the sale of an optical reading device is exempt under section 1115(a)(4) of the Tax Law from the imposition of sales tax.

What this means for you

A retailer sold a device called "An Open Book" -- an optical scanning device that immediately converts printed items like recipes and bills into sound, or scans longer documents like books for later audio playback -- exclusively to visually impaired individuals, per its own supplier contract terms.

New York exempts prosthetic aids and artificial devices purchased to correct or alleviate physical incapacity, as long as the item is primarily/customarily used for that purpose and isn't generally useful to someone without the impairment. The Department's own regulations already recognize a similar device -- an "Optical Tactile Converter," which converts printed text into tactile impulses a blind person can feel and read -- as an example of an exempt prosthetic aid.

Because "An Open Book" performs a functionally equivalent role (converting print to an accessible format for a visually impaired user) and is, per the seller's contractual restriction, sold only to visually impaired individuals (making it generally not useful to anyone else), the Department found it likewise qualifies for the prosthetic-aid exemption.

Q&A

Q: We sell an assistive-technology device that converts print into an accessible format for visually impaired users -- does it qualify as an exempt prosthetic aid?
A: It can, if the device (like the Optical Tactile Converter example in the regulations) performs a function that alleviates the physical incapacity and isn't generally useful to someone without that impairment -- selling exclusively to visually impaired customers helped establish that here.

Q: Does the specific technology (optical scanning + audio, vs. tactile conversion) matter?
A: No -- the Department focused on the functional similarity (converting standard print into a format usable by a visually impaired person), not the specific underlying technology.

Q: What if we sold the same device to sighted customers too?
A: That could jeopardize the exemption, since the regulation requires the item not be "generally useful in the absence of illness, injury or physical incapacity" -- a contractual restriction to visually impaired buyers (as this seller had) helps establish that requirement.

Citations

• Tax Law § 1115(a)(4) -- exempts prosthetic aids, hearing aids, eyeglasses, and artificial devices purchased to correct or alleviate physical incapacity.
• 20 NYCRR 528.5(b)(1) -- requires the item to replace a missing body part/function, be primarily/customarily used for that purpose, and not be generally useful absent illness/injury/incapacity; Example 10 recognizes an Optical Tactile Converter as an exempt prosthetic aid.

Source

• Landing page: https://www.tax.ny.gov/pubs_and_bulls/advisory_opinions/sales_ao_1995.htm
• Opinion: https://www.tax.ny.gov/pdf/advisory_opinions/sales/a95_4s.pdf

Original ruling text

New York State Department of Taxation and Finance
TSB-A-95 (4)S
Sales Tax
January 25, 1995

Taxpayer Services Division
Technical Services Bureau

STATE OF NEW YORK
COMMISSIONER OF TAXATION AND FINANCE
ADVISORY OPINION

PETITION NO. S940729A

On July 29, 1994, a Petition for Advisory Opinion was received from Gary Petschauer, d/b/a
Audio Reading Concepts, 15 Rose Street, Glen Head, New York 11545.
The issue raised by Petitioner, Gary Petschauer, is whether the sale of an optical reading
device is exempt under section 1115(a)(4) of the Tax Law from the imposition of sales tax.
Petitioner sells a device called "An Open Book", which is intended for use by the visually
impaired. The "Open Book" is an optical scanning device which can immediately scan such items
as recipes and bills and convert them to sound. Items such as books can be scanned into the device
for conversion and later played back to the impaired person.
Petitioner's contract with its supplier requires that the "Open Book" only be sold to visually
impaired individuals.
Section 1115(a)(4) of the Tax Law provides an exemption for "[P]rosthetic aids, hearing aids,
eyeglasses and artificial devices and component parts thereof purchased to correct or alleviate
physical incapacity in human beings."
Section 528.5(b)(1) of the Sales and Use Tax Regulations states in part that:
[I]n order to qualify as a prosthetic aid, a hearing aid, eyeglasses or an artificial
device, the property must either completely or partially replace a missing body part
and must be primarily and customarily used for such purposes and not be generally
useful in the absence of illness, injury or physical incapacity.
*

*

*

Example 10: A device (commonly known as an Optical Tactile Converter) which
converts standard printing into various impulses that represent alphabetic and
numeric characters which a blind person can feel with his hand and thereby read
standard print is exempt.
Petitioner's device is similar to an Optical Tactile Converter and is generally not useful to a
person who is not visually impaired. It thus qualifies for exemption from sales tax as a prosthetic
aid under Section 1115(a)(4) of the Tax Law and Section 528.5(b) of the Sales and Use Tax
Regulations.
DATED: January 25, 1995

/s/
PAUL B. COBURN
Deputy Director
Taxpayer Services Division

NOTE: The opinions expressed in Advisory Opinions
are limited to the facts set forth therein.