95-041
Response
July 17, 1995
Request
XXXXX
Re:
Request for Advisory Opinion
Greetings:
Tax
Bulletin 9-95 includes, as part of the Summary of 1995 Sales Tax Legislation,
information on the sales tax exemption for home medical equipment. It appears to me that this exemption should
apply to prescription eyeglasses and contact lenses but the Tax Commission
staff to whom I inquired were unable to verify if that was correct and
suggested I contact you directly for this opinion.
My
belief that the exemption applies to prescription eyeglasses and contact lenses
is based on the following:
1. Prescription eyeglasses and contact lenses
are prescribed by a licenced physician.
Both medical doctors and optometrists are defined under the Medicare law
as physicians.
2. They are used exclusively to serve the
medical purpose of correcting eye and vision problems.
3. They are generally not used in the absence
of such conditions.
4. They are appropriate for home use; and
5. They are a part of the basic benefit package
for all Title 19 (Medicaid) beneficiaries and some Title 18 (Medicare)
beneficiaries.
It
would therefore appear that prescription eyeglasses and contact lenses meet of
the components of the statutory definition of “home medical equipment and
supplies” and that when such devices are (a) purchased by, for, or on behalf of
a home patient and (b) used personally and exclusively by the patient in the
treatment of an eye or vision problem, they should be exempt from sales tax.
Since
the effective date of this change has already passed, it is essential that this
question be resolved immediately in order to allow those in my position to
avoid being in violation of the law by either over- or undercharging our
patients who purchase prescription eyeglasses and/or contact lenses.
Your
prompt attention to this request would be appreciated.
Sincerely,
XXXXX
XXXXX
Re:
Advisory Opinion - Applicability of home medical equipment sales tax exemption
to eye glasses.
Dear
XXXXX,
You
requested an advisory opinion as to whether eyeglasses meet the definition of
“home medical equipment and supplies” which qualify for a sales tax
exemption. We find that they do
not. To qualify for the exemption,
medical equipment and supplies must be prescribed or authorized by a licenced
physician. We interpret “licenced
physician” to mean a licenced medical doctor.
Our research indicates that ophthalmologists are licenced medical
doctors, but optometrists are not.
Since
eye glasses may be prescribed by either an ophthalmologist or an optometrist,
we find that the legislature did not contemplate their inclusion within the
types of medical equipment qualifying for exemption.
If
you do not agree with this determination, you may appeal to the Tax Commission
for a formal hearing. The results of
that hearing would constitute a declaratory judgement and be appealable to the
Utah Supreme Court. If you need any
information about filing an appeal, you may contact our Appeals Unit at XXXXX.
For
the Commission,
Alice
Shearer
Commissioner