HB15 Alabama 2026 Session

Summary

Primary Sponsor

Mark ShireyRepresentative

Republican

Session

2026 Regular Session

Title

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

Summary

HB15 would exempt the gross proceeds from the sale of optical aids from Alabama's state sales tax starting September 1, 2026, with local option taxes possibly applying.

What This Bill Does

The bill exempts the gross proceeds from the sale of optical aids, including eyeglasses and contact lenses, from state sales and use tax. It preserves the taxation of ophthalmic materials sold to patients by licensed ophthalmologists/optometrists (while professional dispensing services like fitting fees are not taxed) and treats sales by opticians as retail sales subject to tax; third-party reimbursements plus patient payments are taxed as applicable. It defines optical aids and related terms, clarifies wholesale vs retail rules, and notes that county or municipal taxes may apply unless approved under Act 2025-280.

Who It Affects

• Consumers/patients who purchase eyeglasses, contact lenses, and other optical aids and would no longer pay state sales tax on those items (local taxes may still apply).
• Ophthalmologists, optometrists, opticians, and optical suppliers (labs, wholesalers) who must implement the new tax rules, collect tax on ophthalmic material sales, and report/handle wholesale vs retail transactions.

Key Provisions

• Exempts gross proceeds from the sale of optical aids (eyeglasses, contact lenses, etc.) from state sales and use tax; local county/municipal taxes may apply only if approved under Act 2025-280.
• Defines optical aids and related terms (eye glasses, frames, lenses, etc.) and clarifies what counts as a sale for tax purposes.
• Preserves tax on the sale of ophthalmic materials to patients by licensed ophthalmologists/optometrists (dispensing/fitting services are not taxed) and requires tax collection on those material sales; third-party reimbursements plus patient payments are included in the tax base where applicable.
• Distinguishes wholesale vs retail sales for ophthalmic-related transactions and clarifies who is a supplier; effective date is September 1, 2026.

AI-generated summary using openai/gpt-5-nano on Feb 11, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation & Revenue