HB74 Alabama 2025 Session

Summary

Primary Sponsor

Mark ShireyRepresentative

Republican

Session

2025 Regular Session

Title

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

Summary

HB74 would exempt the gross proceeds from the sale of optical aids, such as eyeglasses and contact lenses, from Alabama sales and use tax.

What This Bill Does

The bill amends the sales tax law to remove state and local sales tax from the gross proceeds of selling optical aids (eyeglasses and contact lenses). It defines optical aids and eyeglasses for this purpose and clarifies that ophthalmic materials dispensed by licensed eye doctors remain governed by existing tax rules, with professional services fees not taxed. The change affects how optical aids are taxed at the point of sale, while other ophthalmic materials and related services are still taxed as currently required. The act becomes effective September 1, 2025.

Who It Affects

• Consumers and patients who purchase eyeglasses or contact lenses will not pay state, county, or municipal sales tax on those optical aids.
• Retailers, wholesalers, and ophthalmic suppliers that sell optical aids will apply the exemption and not charge sales tax on those items; they will continue to handle taxation for other ophthalmic materials and related services as currently required.

Key Provisions

• Exempts the gross proceeds from the sale of optical aids (eyeglasses, contact lenses) from all state, county, and municipal sales and use taxes.
• Defines optical aids and eyeglasses for the purpose of the exemption and clarifies that ophthalmic materials dispensed by licensed ophthalmologists/optometrists remain subject to tax as a sale, with professional services (e.g., fitting fees) not taxed.
• Maintains existing tax rules for other ophthalmic materials and related components, including how third-party reimbursements are taxed when applicable.
• Effective date: September 1, 2025.

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