HB175 Summary

• Amends Section 40-23-1 of the Code of Alabama 1975 to modify the sales tax exemption for ophthalmic materials dispensed by licensed ophthalmologists.

• Transfers sales tax liability from ophthalmologists to opticians and optometrists, requiring them to collect state sales tax on all transfers of ophthalmic materials including lenses, frames, eyeglasses, and contact lenses.

• Makes ophthalmic materials sold to ophthalmologists by suppliers subject to retail sales tax, with suppliers responsible for tax collection.

• Excludes professional services such as dispensing fees and fitting fees from sales tax applicability regardless of provider type.

• Applies sales tax to amounts reimbursed by third-party benefit plans (including Medicare) plus consumer payments when ophthalmic materials are purchased under such plans.