What eye-care supplies (lens cleaners, contact solutions, cases, chains/straps, spectacles) are exempt from Texas sales tax when dispensed by an optometrist or ophthalmologist?

Plain-English summary

This document is a short May 5, 1994 cover letter from the Comptroller's Tax Administration Division forwarding an attached general policy notice, dated March 24, 1994 and addressed "Dear Eye Care Professionals," that explains how Tex. Tax Code § 151.313(6) applies to "necessary and related supplies dispensed or prescribed" by optometrists and ophthalmologists. Unlike most STAR letters, this is not a response to one taxpayer's specific facts -- it's a general interpretive announcement sent to the eye-care industry, later reissued (with an update dated March 25, 1994) as a specific list of qualifying items.

The notice explains that a range of items are exempt from sales tax when sold or dispensed by optometrists and ophthalmologists: complete Rx spectacles, factory-finished single-vision lenses, hard and soft contact lenses, safety prescription spectacles, safety plano (non-Rx) spectacles, safety repair parts (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, salt tablets sold to optometrists or ophthalmologists, disinfecting units sold as part of or a replacement for a soft lens care kit, special chains and elastic straps, and spectacle and contact lens cases. Charges by optometrists or ophthalmologists for duplicating, repairing, or replacing prescription eyeglasses are also non-taxable.

To claim the exemption, an exemption certificate must be issued at the doctor's time of purchase; the item can then be sold tax-free to the patient. The notice draws a sharp line for opticians: because the statutory exemption is limited to corrective lenses and related items prescribed by an optometrist or ophthalmologist, opticians selling non-prescription items (non-Rx contact lenses, sunglasses, repair parts, and similar goods) are retailers who must hold a sales tax permit and collect and report tax on those taxable sales. If an optician repairs prescription eyewear, the notice instructs the optician to record the prescription from the lensometer reading and obtain a signed exemption certificate from the customer confirming the repair is for prescription eyewear.

What this means for you

Optometrists and ophthalmologists

You can buy the listed items (lens cleaners, contact lens solutions/accessories, spectacle and contact lens cases, chains and elastic straps, frames, and the other listed supplies) tax-free from your suppliers by issuing an exemption certificate at the time of purchase, then dispense them to your patients tax-free. Charges for duplicating, repairing, or replacing prescription eyewear are also not taxable.

Opticians

The exemption under § 151.313(6) does not extend to you for non-prescription items. If you sell non-Rx contact lenses, sunglasses, repair parts, or similar goods, you must hold a sales tax permit and collect and remit sales tax on those sales. If you repair prescription eyewear, document the prescription from the lensometer reading and obtain a signed exemption certificate from the customer stating the repair is for prescription eyewear.

Eye-care patients/consumers

If you buy corrective lenses, contacts, spectacle cases, lens cleaners, contact solutions, or spectacle chains/straps through your optometrist's or ophthalmologist's office as part of your prescribed eye care, these items should not carry sales tax. Non-prescription eyewear items bought from an optician (such as plano sunglasses sold outside a prescription context or non-Rx accessories) are generally taxable.

Common questions

Q: Are contact lens solutions and lens cleaners taxable in Texas?
A: No -- when sold or dispensed by an optometrist or ophthalmologist, contact lens solutions (including eye drops), accessories, and lens cleaners are exempt from sales tax under § 151.313(6).

Q: Do opticians get the same sales tax exemption as optometrists and ophthalmologists?
A: No. The exemption is limited to corrective lenses and related supplies dispensed or prescribed by an optometrist or ophthalmologist. Opticians selling non-prescription items are taxable retailers who must collect sales tax on those sales.

Q: What does an optometrist or ophthalmologist need to do to buy these supplies tax-free?
A: An exemption certificate must be issued at the doctor's time of purchase from the supplier. After that, the item can be sold tax-free to the patient.

Q: Are spectacle cases and chains/straps for glasses covered by the exemption?
A: Yes -- spectacle and contact lens cases, and special chains and elastic straps for spectacles, are both listed as exempt items when sold or dispensed by an optometrist or ophthalmologist.

Citations and references

• Tex. Tax Code § 151.313(6) (exemption for corrective lens and necessary and related supplies dispensed or 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/9405323L

Original ruling text

May 5, 1994

Dear **:

Thank you for your letter inquiring about Section 151.313(6) and necessary and
related supplies dispensed or prescribed by an ophthalmologist or optometrist.

Attached is a copy of a letter and a new list addressing the exemption for
"necessary and related supplies dispensed and prescribed" by ophthalmologists
and optometrists.

If you have any questions or need more information, please call or write. The
toll free number is 1-800-531-5441, ext. 3-4675. My direct line number is (512)
463-4675.

Sincerely,

Tom Soto
Tax Administration Division

March 24, 1994

Dear Eye Care Professionals:

Recently, I became aware of our interpretation of Subsection 151.313(6)
exempting "necessary and related supplies dispensed or prescribed" by specific
eye care professionals. I asked my sales tax section to review the history of
this exemption for supplies both bought and prescribed by doctors for their
patients.

Based on the results of this study, the following items are exempt from sales
tax when sold or dispensed by optometrists and ophthalmologists: lens cleaners,
contact lens solutions and accessories, spectacle and contact lens cases, and
special chains and elastic straps for spectacles. An exemption certificate must
be issued at the doctor's time of purchase. After that, the item can be sold
tax free to the consumer. Any other memos or letters from this agency on this
issue are superseded by this one.

I hope the information in this letter is useful. Please do not hesitate to
contact my office if we can be of further service to you.

Sincerely,

JOHN SHARP
Comptroller of Public Accounts
of the State of Texas

CORRECTIVE LENS AND RELATED SUPPLIES
March 25, 1994

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
optometrist 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 be 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 the 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.