HB514 Alabama 2012 Session

Summary

Primary Sponsor

Jay Love

Republican

Co-Sponsor

Jim McClendon

Session

Regular Session 2012

Title

Ophthalmic materials, sale of by licensed ophthalmologist subject to state sales tax, Sec. 40-23-1 am'd

Summary

HB514 changes how ophthalmic materials are taxed by taxing the sale to licensed ophthalmologists or optometrists (collected by suppliers) while dispensing those materials to patients as part of medical services remains tax-exempt.

What This Bill Does

The bill Amends Section 40-23-1 to ensure that dispensing or transferring ophthalmic materials to patients by a licensed ophthalmologist or optometrist is not considered a sale subject to state sales tax. The sale of ophthalmic materials to licensed ophthalmologists or licensed optometrists by suppliers (such as optical labs or wholesalers) becomes a taxable retail sale, with the supplier responsible for collecting the tax. Ophthalmologists and optometrists are treated as the ultimate consumers for these materials and are not responsible for collecting the tax themselves; the tax is collected by the supplier at the point of sale. The act defines who counts as a supplier (including optical laboratories and wholesalers) and provides that transfers of ophthalmic materials between professionals are retail sales subject to the tax; it also clarifies how tax applies when third-party benefit plans are involved and sets an effective date.

Who It Affects

• Licensed ophthalmologists and licensed optometrists — they will pay sales tax on ophthalmic materials when purchasing from suppliers and will not collect tax on dispensing to patients.
• Ophthalmic material suppliers (optical laboratories, wholesalers, or others selling ophthalmic materials to ophthalmologists) — they will be responsible for collecting and remitting the sales tax on those sales.

Key Provisions

• Dispensing or transferring ophthalmic materials to a patient by a licensed ophthalmologist or optometrist, as part of professional service, shall not be deemed a sale subject to the state sales tax.
• The sale of ophthalmic materials to licensed ophthalmologists or optometrists by a supplier shall be considered a retail sale subject to the state sales tax, and the supplier shall collect the tax.
• The ophthalmologist or optometrist shall be considered the ultimate consumer and shall not have responsibility to collect the tax; the supplier is responsible for collecting the tax from the licensed ophthalmologist.
• The act becomes effective on the first day of the third month following its passage and approval by the Governor.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Sales and Use Tax