Which optical products were exempt prescription eyeglasses and which stock products were taxable?

Subject

Prescription Eyeglasses

Plain-English summary

Patient-specific prescription lenses, accompanying frames, and contact lenses were exempt from Florida sales tax. The exemption required a specific prescription from a licensed optometrist, ophthalmologist, or other licensed practitioner.

Finished, semi-finished, finished-stock, and semi-finished-stock lenses were not prescription eyeglasses and were taxable, as were stock frames and related accessories. The producer could accept a resale certificate or affidavit from a properly registered dealer purchasing those items for resale.

What this means for you

The product's stage of manufacture did not make it prescription eyewear. Patient-specific prescription status and the buyer's resale role controlled.

Common questions

Q: Were patient-specific prescription lenses exempt? Yes.

Q: Were stock lenses and frames exempt? No.

Q: Could an optical dealer buy stock products tax-free for resale? Yes, with proper resale documentation.

Citations and references

• Fla. Stat. § 212.08(2) — prescription eyeglasses exemption
• Fla. Admin. Code r. 12A-1.020(17) — prescription and stock eyewear
• Fla. Stat. § 213.22 — Technical Assistance Advisements

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 00A-057

Original ruling text

SUMMARY

QUESTION: Taxpayer is in the business of the production of
prescription optical eyewear, including but not limited to,
specific prescription lenses with or without accompanying
frames, contract lenses, stock lenses, stock frames, and
other related accessories. Can Taxpayer sell stock lenses
and stock frames to a licensed optical practitioner tax
free?

ANSWER - Based on Facts Below: Taxpayer is not required to
charge sales tax on transactions involving the sale of the
patient specific prescription lenses with or without
accompanying frames and contact lenses per Rule 12A1.020(17)(a), F.A.C. However, Taxpayer must charge sales
tax on sales of stock lenses, stock frames, and related
accessories in accordance with Rule 12A-1.020(17)(b),
F.A.C. Since finished, semi-finished, finished stock, and
semi-finished stock lenses are not prescription eyeglasses,
they are all taxable under this Rule. Accordingly,
Taxpayer may accept a resale certificate or affidavit from
a properly registered dealer.

Oct 10, 2000

Re: Technical Assistance Advisement 00A-057
XXX ("Taxpayer")
Sales & Use Tax-Prescription Eyeglasses
Statute: Section 212.08(2), F.S.
Rule: 12A-1.020(17)(a), (b), F.A.C.

Dear :

This response is in reply to your letter dated September 7,
2000, requesting the Department's issuance of a Technical
Assistance Advisement ("TAA") pursuant to s. 213.22, F.S., and
Chapter 12-11, F.A.C., regarding the referenced matter and
parties. An examination of your petition has established that

you have complied with the statutory and regulatory requirements
for issuance of a TAA. Therefore, the Department is hereby
granting your request for issuance of a TAA.

FACTS

Taxpayer is in the business of the production of prescription
optical eyewear, including but not limited to, specific
prescription lenses with or without accompanying frames,
contract lenses, stock lenses, stock frames, and other related
accessories. Taxpayer does not charge Florida sales tax on
transactions involving the sale of the patient specific
prescription lenses with or without accompanying frames and
contact lenses per Rule 12A-1.020(17)(a), F.A.C. Taxpayer does
charge sales tax on sales of stock lenses, stock frames, and
related accessories in accordance with Rule 12A-1.020(17)(b),
F.A.C. Various customers have inquired of Taxpayer as to the
appropriateness of charging Florida sales tax on sales of stock
lenses.

Taxpayer has listed a variety of lenses and describes the
different characteristics of each, and requests assistance on
the taxability of each of the different varieties.

LAW

Section 212.08, F.S., provides in pertinent part:

(2)(a) There shall be exempt from the tax imposed by this
chapter... prescription eyeglasses and items incidental
thereto or which become a part thereof;....

Rule 12A-1.020, F.A.C., provides in pertinent part:

(17)(a) Prescription eyeglasses and incidental items which
become parts thereof are exempt. Prescription eyeglasses
includes lenses, including contact lens, prescribed for the
correction of a patient's refractive effort, for the
improvement of a patient's vision, or for protective
purposes. Incidental items to prescription eyeglasses
includes frames, component parts, carrying case and other

like items if purchased for use with the prescription
eyeglasses. Eyeglass lens cleaning solutions, including
contact lens cleaning solutions, are taxable.

(b) The sale of standard or stock eyeglasses and other
incidental component parts thereto without a prescription
is taxable. These include frames and component parts,
carrying cases, safety glasses, sunglasses, field glasses,
opera glasses, magnifying glasses and spec chains.

ANALYSIS, AND DISCUSSION

Prescription eyeglasses are specifically exempt per Rule 12A1.020(17)(a), F.A.C., and include only those eyeglasses
purchased by a patient with a specific prescription issued by a
licensed Optometrist, Ophthalmologist or other licensed
practitioner. Since finished, semi-finished, finished stock,
and semi-finished stock lenses are not prescription eyeglasses,
they are all taxable under this Rule. Accordingly, Taxpayer may
accept a resale certificate or affidavit from a properly
registered dealer.

This response constitutes a Technical Assistance Advisement
under s. 213.22, F.S., which is binding on the Department only
under the facts and circumstances described in the request for
this advice as specified in s 213.22, F.S. Our response is
predicated on those facts and the specific situation summarized
above. You are advised that subsequent statutory and
administrative rule changes or that judicial interpretations of
the statutes or rules upon which this advice is based may
subject similar future transactions to a different treatment
than expressed in this response.

You are further advised that this response, your request and
related backup documents are public records under Chapter 119,
F.S., which are subject to disclosure to the public under the
conditions of s. 213.22, F.S. Confidential information must be
deleted before public disclosure. In an effort to protect
confidentiality, we request that you provide the undersigned
with an edited copy of your request for Technical Assistance
Advisement, the backup material and this response, deleting

names, addresses and any other details which might lead to
identification of the taxpayer. Your response should be
received by the Department within 15 days of the date of this
letter.

Sincerely,

Michael T. Cavanaugh
Tax Law Specialist
Technical Assistance and Dispute Resolution
850-922-9411
Control #42445