HB282 Alabama 2024 Session

Summary

Primary Sponsor

Mark ShireyRepresentative

Republican

Session

Regular Session 2024

Title

Taxation, sales tax exemptions, sales and use tax exemption provided for purchases of optical aids, including eyeglasses and contact lenses.

Summary

HB282 would exempt the state sales tax on the gross proceeds from selling optical aids (eyeglasses, contact lenses, etc.) in Alabama, starting September 1, 2024.

What This Bill Does

It removes the state sales tax from gross proceeds of optical aids sold in the state. The exemption does not apply to county or municipal taxes unless a local government approves it. It also clarifies how ophthalmic materials are taxed when dispensed by licensed eye doctors, and how third‑party reimbursements are taxed. Professional dispensing or fitting services remain non-taxable, while the actual sale of ophthalmic materials by doctors is taxed.

Who It Affects

• Consumers/patients in Alabama buying optical aids (eyeglasses, contact lenses) who would generally pay no state sales tax on these items, though local taxes may still apply.
• Ophthalmologists, optometrists, and optical suppliers who sell or dispense optical aids and related ophthalmic materials and must follow the new tax collection rules (tax on ophthalmic material sales dispensed by doctors; professional service fees not taxed; handling of third‑party reimbursements).

Key Provisions

• Exempts gross proceeds from the sale of optical aids from state sales and use tax.
• Effective date is September 1, 2024.
• Exemption does not apply to county or municipal sales taxes unless approved by local resolution or ordinance.
• Dispensing or transferring ophthalmic materials by a licensed ophthalmologist or optometrist is a sale subject to state sales tax; dispensing and fitting fees themselves are not taxed as part of the professional service.
• If a third-party benefit plan reimburses the consumer, tax applies to the combined reimbursement plus the consumer’s payment.
• Definitions are added/clarified for terms such as eye glasses, optical aid, supplier, and related concepts to govern the tax treatment.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation & Revenue