Starting July 1, 2019, all corrective eyeglasses and contact lenses are no longer subject to Ohio state sales taxes. This new law may have significant implications for your practice and patients.
Ohio tax statute declares that sales tax does not apply to sales of certain prosthetic devices, drugs, durable medical equipment and mobility enhancing equipment. As of July 1, the definition of “prosthetic device” is amended to include corrective eyeglasses and contact lenses. (Ohio Revised Code (R.C.) section 5739.01(FFF))
New Tax Law Benefits Eye Care Providers and Patients
According to Dayton Daily News, the Legislative Service Commission estimates Ohio residents will spend about $400 million on eyeglasses and contact lenses in 2020. Additionally, the Ohio Optometric Association states that this new tax law will save consumers an estimated $29 million annually. This change is also welcome news for practice owners and other privately-owned optical shops. Removing this economic barrier can make all the difference for your patients who may not be able to afford necessary medical devices including eyeglasses and contact lenses.
Which Optical Products Are Tax Exempt?
The tax exemption applies to the sale of eyeglasses including both lenses and corresponding frames. Of course, the sale requires a valid prescription from a licensed practitioner. If the sale is for frames only, the frames are taxable unless meant as a replacement or repair of a previous pair of prescription eyeglasses.
Nonprescription readers and plano sunglasses are taxable items, but plano colored contact lenses still require a valid prescription, so sales of these products are tax exempt. For further clarification, please refer to the guidelines from the Ohio Department of Taxation.
Provide Your Patients With Quality Lenses
At R&D Optical Lab, we bring your patients high-quality yet affordable prescription lenses. We understand how important it is to make sure your patients have the best vision possible and are protecting their eye health. This often starts with the right pair of eyeglasses.
We offer you the latest trends in the optical industry and use the most cutting-edge optical technology. R&D, an independent optical lab, brings your patients unique products such as mirrored lenses and Chemistrie Clips, which allow patients to convert their eyeglasses into sunglasses, as well as reading glasses and blue light blocking glasses.
With the new tax law in place, this is a great opportunity to take advantage of lifestyle-based dispensing. Understanding the products your optical dispenses will allow you to recommend lenses that are appropriate for your patient’s work and recreational needs. We are happy to review our products with you and answer any questions you have.
At R&D, our goal is to take care of all your patients’ optical needs. We will work closely with your practice to ensure your patients are satisfied with their eyeglasses. Please visit our website www.RandDOptical.com or call us at 513-273-4034 to learn more about our optical products.
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