HB175 Alabama 2013 Session

Updated Feb 27, 2026

Low Interest

Summary

Primary Sponsor: Jim McClendon
Republican
Session: Regular Session 2013
Title: Ophthalmologists, dispensing of, exemption removed, Sec. 40-23-1 am'd.
Summary: HB175 makes the sale of ophthalmic materials to licensed ophthalmologists taxable, while dispensing ophthalmic materials to patients by the ophthalmologist remains exempt from sales tax.
What This Bill Does
Taxes the sale of ophthalmic materials to licensed ophthalmologists, with the supplier responsible for collecting the sales tax from the ophthalmologist. Keeps dispensing or transferring ophthalmic materials to patients by a licensed ophthalmologist as not a taxable sale, making the ophthalmologist the ultimate consumer for those materials. If a consumer pays through a third-party benefit plan (such as Medicare), the sales tax applies to the amount reimbursed by the plan plus the amount paid by the consumer at the time of sale. The act becomes effective immediately after the Governor signs it into law.

Who It Affects
Licensed ophthalmologists/optometrists: will be the ultimate consumer for ophthalmic materials dispensed to patients and will not collect sales tax from patients; they will pay tax when purchasing from suppliers (tax collected by suppliers).
Ophthalmic material suppliers/wholesalers/optical labs: must collect and remit sales tax on sales of ophthalmic materials to licensed ophthalmologists.
Patients receiving ophthalmic materials through ophthalmologists: dispensing to the patient remains not taxed, but costs may reflect tax in cases involving third-party payer reimbursements.
Third-party benefit plans (e.g., Medicare) and other payers: reimbursements used to purchase ophthalmic materials may be part of the taxable amount (plan reimbursement plus patient payment).

Key Provisions
Dispensing ophthalmic materials by a licensed ophthalmologist to a patient as part of professional service is not a taxable sale.
Sale of ophthalmic materials to a licensed ophthalmologist by a supplier is a taxable retail sale; the supplier is responsible for collecting the tax from the ophthalmologist.
For purchases by consumers covered by third-party benefit plans, the sales tax applies to the plan's reimbursement amount plus the patient's payment at the time of sale.
The act becomes effective immediately following its passage and the Governor's approval.

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