Which eyewear and eye-care products are exempt from Texas sales tax when dispensed by an optometrist or ophthalmologist, and does the same exemption apply to opticians?

Plain-English summary

An eye doctor opening a new optical office to sell frames, lenses, and contact lenses to his own patients asked the Comptroller to confirm whether these items are taxable. The answer: Tex. Tax Code § 151.313 exempts corrective lenses and necessary related supplies, but only when dispensed or prescribed by an ophthalmologist or optometrist — not when sold by an unrelated retailer.

The letter provides a specific list of items that qualify for exemption when sold to (and dispensed by) an optometrist or ophthalmologist:

• Complete Rx spectacles, factory-finished single vision lenses, hard and soft contact lenses
• Safety prescription spectacles, safety plano (non-Rx) spectacles, safety prescription lenses
• Safety parts (repair parts like screws and temples)
• Lens cleaners, contact lens solutions (including eye drops) and accessories
• Spectacle frames, sunglass frames only, plano (non-Rx) sunglasses
• Salt tablets sold to optometrists/ophthalmologists
• Disinfective units sold as part of or a replacement to a soft lens care kit
• Special chains, elastic straps, spectacle cases, and contact lens cases

A charge by an optometrist or ophthalmologist for the duplication, repair, or replacement of prescription eyeglasses is not taxable. Optometrists/ophthalmologists may give exemption certificates to their suppliers for the listed exempt items.

Opticians get very different treatment. Because the statutory exemption is limited to items dispensed by an optometrist or ophthalmologist, all non-prescription items sold by opticians are taxable — opticians are retailers who must hold a sales tax permit and collect and report tax on their sales. There's a narrow accommodation: if an optician repairs eyeglasses or frames of prescription eyewear, the optician can record the prescription (from lensometer readings) and get a signed exemption certificate from the customer confirming the repair is for prescription eyewear, allowing that specific repair to be treated as exempt.

What this means for you

Optometrists and ophthalmologists selling eyewear directly to patients

The corrective-lens items on this list — frames, lenses, contact lenses, safety eyewear, cleaning/care supplies, repair parts, cases — are exempt when you dispense them, and duplication/repair/replacement of prescription eyeglasses is also nontaxable. Give your suppliers an exemption certificate to buy these items tax-free.

Opticians

Your sales of non-prescription items (sunglasses generally, non-Rx frames sold standalone, miscellaneous items) are taxable, and you need a sales tax permit to collect and report that tax. If you repair prescription eyewear, you can treat that specific repair as exempt — but only if you document the prescription (lensometer reading) and get a signed exemption certificate from the customer confirming it's for prescription eyewear.

Accountants and tax professionals

The exemption in § 151.313 is tied to who dispenses the item (optometrist/ophthalmologist), not just what the item is — the identical physical product (a pair of glasses, a lens) can be exempt or taxable depending on whether it moves through a licensed eye doctor's dispensing or an optician's retail sale.

Common questions

Q: Are prescription eyeglasses and contact lenses exempt from Texas sales tax?
A: Yes, when dispensed or prescribed by an optometrist or ophthalmologist, under Tex. Tax Code § 151.313 — including a specific list of related supplies and repair parts.

Q: Is repairing or duplicating prescription eyeglasses taxable?
A: Not when done by an optometrist or ophthalmologist — that charge is not taxable.

Q: Do opticians get the same tax exemption?
A: No. Because the statutory exemption is limited to items dispensed by an optometrist or ophthalmologist, opticians' sales of non-prescription items are taxable, and opticians must hold a sales tax permit.

Q: Can an optician ever get an exemption for a repair?
A: Yes, narrowly — if repairing prescription eyewear, the optician can document the prescription and obtain a signed customer exemption certificate confirming the repair is for prescription eyewear.

Q: Can I rely on this letter for my own optical business?
A: No. This opinion is based on the facts submitted and current law; other facts, though similar, may result in different answers.

Citations and references

Statutes:

• Tex. Tax Code § 151.313 (exemption for corrective lenses and related supplies dispensed/prescribed by an ophthalmologist or optometrist)

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/200004357L

Original ruling text

Date: April 28, 2000

From: Bettie Peterson

To:

Subject: Re:193616 OPTICAL PRODUCTS

Thank you for your recent email.

Please refer to the list attached. If you have questions concerning items not
on the list, please contact me again.

Referenced rules are available
at.

The State Tax Automated Research system, which provides viewing and downloading
of rules, edited letter rulings, hearings, AG Opinions, etc., may be accessed
on the Internet at: http://www.window.state.tx.us/

This opinion is based on the facts you submitted and current law. Other facts
though similar, may result in different answers.

If you have questions or need more information, I will be glad to help you. You
may call me toll free from anywhere in the United States at 1-800-531-5441,
extension 5-0330.

On Tue, 25 Apr 2000 10:35:43 ** wrote:

A client who is an eye doctor recently decided to open an optical office to
sell frames, lenses, and contact lenses to patients for whom he provides the
prescription. He would like to see a publication to verify that these products
are subject to sales tax. Could you please verify that the frames, lenses, and
contact lenses are subject to sales tax and if so what publication could be
referenced?

The Texas Tax Code, Section 151.313, provides a sales tax exemption for the
following: Corrective lens and necessary and related supplies, if dispensed or
prescribed by an ophthalmologist or optometrist.

The following items qualify for exemption from sales and use tax when sold to
optometrists or ophthalmologist to be dispensed under their direction:

• Complete Rx spectacles
• Factory-finished single vision lenses
• Contact lenses - hard or soft
• Safety prescription spectacles
• Safety plano (non-Rx) spectacles
• Safety parts (this category covers repair parts to spectacles, such as screws
  and temples)
• Lens cleaners
• Contact lens solutions (including eye drops) and accessories
• Spectacle frames
• Plano sunglasses (non Rx)
• Safety prescription lenses
• Sunglass frames only
• Salt tablets sold to optometrists or ophthalmologists
• Disinfective unit only when sold as part of or a replacement to the soft lens
  care kit
• Special chains and elastic straps
• Spectacle cases and contact lens cases

A charge by optometrists or ophthalmologists for the duplication, repair, or
replacement of prescription eyeglasses is not taxable.

Optometrists or ophthalmologists may give exemption certificates to suppliers
for those items previously listed as exempt from tax.

Opticians: Because the Texas Tax Code limits the sales tax exemption to
corrective lens prescribed by optometrists or ophthalmologists, all
non-prescription items sold by opticians are taxable.

Opticians are retailers of non-prescription contact lenses, sunglasses, repair
parts and miscellaneous items. Opticians must hold sales tax permits, collect
and report sales tax on the sale of all taxable items.

If an optician repairs eyeglasses, or frames of prescription eye wear, the
optician should record the prescription of the corrective lens, based on the
readings taken from the lensometer and obtain an exemption certificate, signed
by the customer, stating that the repairs are for prescription eye wear.