Is specialized equipment sold to blind and visually impaired people — video magnifiers, Braille note-takers, talking GPS units, and reading scanners — exempt from New York sales tax as prosthetic aids?

Plain-English summary

A manufacturer of equipment for blind and visually impaired people asked whether its full product line was exempt from New York sales tax. The lineup included the "Smartview" line of stand-alone video magnifiers (which project a magnified image of printed material onto a monitor, up to 60x), a handheld "PocketViewer" magnifier, "BrailleNote" and "VoiceNote" note-taking devices with Braille keyboards or speech output, a "BrailleNote GPS" add-on receiver that reads out location information, and a "ScannaR" flatbed scanner that reads printed text aloud. Everything is sold either directly to visually impaired individuals for home use, or to government agencies, schools, libraries, and rehabilitation organizations that serve them.

New York exempts "prosthetic aids" and "artificial devices" that correct or alleviate a physical incapacity, as long as the item primarily and customarily serves that purpose and isn't generally useful to people without the impairment — the Department's own examples in its regulations already cover things like Braille typewriters and devices that convert print into tactile alphabets. The Department found that every product here fits that mold: the magnifiers replace the function of failing eyes for people with limited vision, and the Braille/voice devices replace the reading function of the eye entirely for people who are blind. Because the proprietary software bundled with the BrailleNote and VoiceNote devices only works with that specific hardware and isn't sold separately, it counts as a component part of the exempt device rather than a separately taxable software sale. The bottom line: none of these products are subject to New York sales tax when sold to individuals with visual impairments, or to the government/nonprofit organizations that serve them.

What this means for you

Sellers of assistive technology for the blind or visually impaired

If your product's core function is to let a visually impaired person read, navigate, or access information that a sighted person would get through normal vision — and it isn't generally useful to people without that impairment — it likely qualifies as an exempt prosthetic aid, regardless of how technologically sophisticated it is (satellite GPS, computerized speech, and Braille displays all qualified here). Bundled proprietary software that only runs on your exempt hardware, and that you don't sell separately, rides along as an exempt component part rather than being carved out as separately taxable software.

Schools, libraries, and rehabilitation agencies serving the visually impaired

Purchases of this kind of specialized assistive equipment for your visually impaired clients or students are exempt the same way an individual's purchase would be — the exemption isn't limited to home users.

Sellers of "dual-use" accessibility add-ons

Watch the line the Department draws for GPS-type add-ons: it mattered here that the receiver "cannot function independently" from the exempt BrailleNote/VoiceNote device due to specialized programming. A similar accessory that works as a standalone, generally useful gadget (not tied to the exempt device) could be analyzed differently.

Common questions

Q: Does every accessibility product for blind users automatically qualify for this exemption?
A: No. The product must primarily and customarily serve to correct or alleviate the physical incapacity and must not be generally useful to people without that incapacity — a calculator with a talking feature, for example, is still a taxable calculator except for the separately stated portion attributable to the talking feature.

Q: Is software sold with an assistive device always exempt along with the hardware?
A: Only when the software is specifically designed for and functions exclusively with the exempt device, and isn't offered for sale separately — then it's treated as a component part of the exempt device rather than as its own taxable sale.

Q: Can a nonprofit or school buy this kind of equipment tax-free for the people it serves?
A: Yes, per this opinion — sales to government entities, welfare agencies, libraries, schools, and rehabilitation organizations providing services to visually impaired individuals are covered the same as sales directly to an individual.

Q: Can another equipment maker rely on this ruling for its own products?
A: No. This is a fact-specific advisory opinion binding only as to this petitioner and its exact product line; a different product needs its own analysis of whether it truly replaces an eye's function and isn't generally useful to the sighted.

Citations and references

Statutes and rules:

• Tax Law § 1101(b)(4), (5), (6), (14) (retail sale, sale/purchase, tangible personal property, pre-written software)
• Tax Law § 1105(a) (tax on retail sales of tangible personal property)
• Tax Law § 1115(a)(4), (g) (prosthetic aid/artificial device exemption and related services exemption)
• 20 NYCRR 528.5 (qualifications and examples of exempt prosthetic aids, including Braille typewriters and print-to-tactile converters)

Prior advisory opinions relied on:

• Audio Reading Concepts, TSB-A-95(4)S (assistive reading equipment as prosthetic aid)

Source

• Landing page: https://www.tax.ny.gov/pubs_and_bulls/advisory_opinions/sales_ao_2005.htm
• Opinion: https://www.tax.ny.gov/pdf/advisory_opinions/sales/a05_14s.pdf

Original ruling text

New York State Department of Taxation and Finance

TSB-A-05(14)S
Sales Tax
April 27, 2005

Office of Tax Policy Analysis
Technical Services Division
STATE OF NEW YORK
COMMISSIONER OF TAXATION AND FINANCE
ADVISORY OPINION

PETITION NO. S040211A

On February 11, 2004, the Department of Taxation and Finance received a Petition for
Advisory Opinion from Pulse Data Humanware, Inc., 175 Mason Circle, Concord, CA 94520.
The issue raised by Petitioner, Pulse Data Humanware, Inc., is whether the equipment it
sells to visually impaired people in New York is exempt from sales tax.
Petitioner submitted the following facts as the basis for this Advisory Opinion.
Petitioner sells equipment for use by visually impaired individuals who are totally blind
or who have limited vision and may be considered legally blind. Products include the
“Smartview” magnifier, “BrailleNote” and “VoiceNote” with keyboard options, “ScannaR” and
related software, as well as Braille displays, writers, embossers, and translators. These products
are sold either for home use to users who are partially sighted or blind, or to government entities,
welfare agencies, libraries, schools, and rehabilitation organizations providing services to
individuals with such disabilities. Petitioner provided a copy of its sales brochure as part of its
request for an Advisory Opinion. The following descriptions of Petitioner’s products are derived
from the information presented in the sales brochure.
Video Magnifiers – The Smartview products are video magnifiers that have been
designed for comfort and ease of use. Essentially, the magnifiers are stand alone units comprised
of a reading table, projector, and monitor. Reading materials are placed on the reading table
where they are magnified and projected onto the monitor. Magnification ranges from 2 to 60
times the original size. The reading table is designed so that the user can slide the reading
materials in any direction, making it easy to view any object. The depth of the reading table
allows users to view anything from a photograph to a thick telephone book. All controls are
located on the front panel and have been designed to be user friendly. The Smartview 8000 is
sold with a Smart Keypad and Smart PC Access kit. The Smart Keypad provides large onscreen
display of text from the Smartview 8000 and the “lines and blinds” features enhance viewing by
superimposing adjustable line markers onto the monitor screen and highlighting a single column
or line. The Smart PC Access kit enables variable horizontal and vertical split screen capability
as well as views of the full screen SmartView monitor and a full screen PC monitor. This
eliminates the need for two monitors to view magnified and/or computer materials.
PocketViewer – The PocketViewer is a portable magnifying device which essentially
takes a picture of the text to be read and magnifies the text up to 7 times the original size. The
device’s full color picture quality allows a user to read maps, illustrations, text on three

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dimensional objects such as product labels or price tags, and magazines and books. Enhanced
contrast modes (white/black or black/white) can be selected for clear and easy reading.
Braille/Voice Equipment – The BrailleNote Family of products are electronic devices
which allow blind or sight impaired individuals to enter and store information for later retrieval.
BrailleNote BT features a nine-key Braille keyboard ergonomically styled for user comfort while
entering such information. A one-handed mode is included for people with limited hand use for
data entry. Blind or sight impaired individuals can choose to retrieve the information through
either a Braille display or speech voice output. BrailleNote QT is for those who want the choice
of Braille or speech output, but prefer a computer style keyboard. It also has a Braille input
mode. The VoiceNote products function in the same manner as the BrailleNote products, but
they provide only speech output.
Global Positioning Systems – BrailleNote GPS uses Global Positioning System
satellites to receive information about its position and nearby points of interest, using a receiver
about the size of a mobile phone that plugs into the BrailleNote or VoiceNote device. The
pertinent information received from the GPS satellites regarding the impaired individual’s
physical location is translated and sent either to the Braille display or speech output of the
BrailleNote or VoiceNote device.
The receiver appears to be similar to other GPS devices offered for sale to the general
public, but it cannot function independently from the BrailleNote or VoiceNote device due to its
specialized computer programs. The receiver enables personalized travel routes and favorite
spots to be easily programmed into the BrailleNote or VoiceNote device, as well as thousands of
points of interest available with the system.
Scanning Equipment – ScannaR is a compact flat-bed scanner that will automatically
scan text, then read it aloud. ScannaR can generally be used to scan any text material, and its use
is not limited to specific texts. While the ScannaR is generally a stand-alone piece of equipment,
it can be used to capture print materials for the BrailleNote or VoiceNote device by transferring
the saved file to a PC.
Related Software – BrailleNote and VoiceNote products have been developed
specifically to meet the needs of people who are blind. The various proprietary software
programs which allow this equipment to operate are developed specifically to function with such
specialized equipment. The software is not compatible or functional with any other computer
equipment. In addition to its specialized operating software, every BrailleNote and VoiceNote
model now has the following user friendly software functions: word processor, e-mail, daily
planner, book reader, Web browser, visual display, contact lists, scientific calculator, and on-line
help. While such software functions appear to be generic in nature, the software is programmed
specifically for the BrailleNote and VoiceNote hardware and operating systems to produce
Braille or voice outputs and cannot be utilized by other computer equipment.

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Applicable law and regulations
Section 1101(b) of the Tax Law provides, in part:
When used in this article for the purposes of the taxes imposed by subdivisions
(a), (b), (c) and (d) of section eleven hundred five and by section eleven hundred ten, the
following terms shall mean:
*

*

*

(4) Retail sale. (i) A sale of tangible personal property to any person for any
purpose, other than (A) for resale as such or as a physical component part of tangible
personal property, or (B) for use by that person in performing the services subject to tax
under paragraphs (1), (2), (3), (5), (7) and (8) of subdivision (c) of section eleven hundred
five where the property so sold becomes a physical component part of the property upon
which the services are performed or where the property so sold is later actually
transferred to the purchaser of the service in conjunction with the performance of the
service subject to tax. . . .
*

*

*

(5) Sale, selling or purchase. Any transfer of title or possession or both, exchange
or barter, rental, lease or license to use or consume (including, with respect to computer
software, merely the right to reproduce), conditional or otherwise, in any manner or by
any means whatsoever for a consideration, or any agreement therefor, including the
rendering of any service, taxable under this article, for a consideration or any agreement
therefor.
(6) Tangible personal property. Corporeal personal property of any nature. . . .
Such term shall also include pre-written computer software, whether sold as part of a
package, as a separate component, or otherwise, and regardless of the medium by means
of which such software is conveyed to a purchaser. . . .
*

*

*

(14) Pre-written computer software. Computer software (including pre-written
upgrades thereof) which is not software designed and developed by the author or other
creator to the specifications of a specific purchaser. The combining of two or more pre­
written computer software programs or pre-written portions thereof does not cause the
combination to be other than pre-written computer software. Pre-written software also
includes software designed and developed by the author or other creator to the
specifications of a specific purchaser when it is sold to a person other than such

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purchaser. Where a person modifies or enhances computer software of which such
person is not the author or creator, such person shall be deemed to be the author or
creator only of such person's modifications or enhancements. Pre-written software or a
pre-written portion thereof that is modified or enhanced to any degree, where such
modification or enhancement is designed and developed to the specifications of a specific
purchaser, remains pre-written software; provided, however, that where there is a
reasonable, separately stated charge or an invoice or other statement of the price given to
the purchaser for such modification or enhancement, such modification or enhancement
shall not constitute pre-written computer software.
Section 1105(a) of the Tax Law imposes a tax on the receipts from every retail sale of
tangible personal property, except as otherwise provided.
Section 1115 of the Tax Law provides, in part:
(a) Receipts from the following shall be exempt from the tax on retail sales
imposed under subdivision (a) of section eleven hundred five and the compensating use
tax imposed under section eleven hundred ten:
*

*

*

(4) Prosthetic aids, hearing aids, eyeglasses and artificial devices and component
parts thereof purchased to correct or alleviate physical incapacity in human beings.
(Emphasis added)
*

*

*

(g) Services otherwise taxable under paragraph (3) of subdivision (c) of section
eleven hundred five shall be exempt from tax (1) if performed upon prosthetic aids,
hearing aids, eyeglasses, artificial devices or medical equipment when receipts from the
retail sale of such items are exempt from tax under the provisions of paragraphs three and
four of subdivision (a) of this section . . . .
Section 528.5 of the Sales and Use Tax Regulations provides, in part:
(a) Exemption. Prosthetic aids, hearing aids, eyeglasses and artificial devices and
component parts thereof, purchased to correct or alleviate physical incapacity in human
beings are exempt from the tax.
(b) Qualifications. (1) In order to qualify as a prosthetic aid, a hearing aid,
eyeglasses or an artificial device, the property must either completely or partially replace
a missing body part or the function of a permanently inoperative or permanently

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malfunctioning body part and must be primarily and customarily used for such purposes
and not be generally useful in the absence of illness, injury or physical incapacity.
(Emphasis added)
*

*

*

Example 5: Sound amplification devices for hard-of-hearing people used
with telephones or television sets are exempt.
Example 6: Specialized equipment used by the hearing impaired that
converts teletype signals into telephone signals and telephone signals into teletype
signals and thus enables a hearing impaired person to communicate by telephone,
are exempt.
*

*

*

Example 9: Braille typewriters are exempt.
Example 10: A device (commonly known as an Optical Tactile Converter)
which converts standard printing into various impulses that represent alphabetic
and numeric characters which a blind person can feel with his hand and thereby
read standard print is exempt.
Example 11: Devices for installation of TV sets for receiving closed
captioned programs are exempt.
(2) Parts, special attachments, special lettering, etc., that are added to or attached
to tangible personal property, such as appliances, so that a handicapped person can use
them are exempt. If tangible personal property is sold with special controls, lettering or
devices, and the additional charge for the added features is separately stated on the bill
for the tangible personal property, that portion of the sales receipts attributable to the
added features is exempt. In determining whether the extra amount charged for the
special controls, lettering or devices is reasonable, like items exclusive of the added
features should be compared with the same item with the added features.
*

*

*

Example 15: That portion of the price of braille books and braille games
which is attributable to those features of the books and games that enable the
affected person to use them, if separately stated on the bill, is excluded from the
amount upon which the sales tax is computed. In determining the reasonableness
of the amount of the exclusion, like items must be compared, such as, a

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comparison of the price of a hard cover braille edition of a book with the same
hard cover edition of a nonbraille book.
Example 16: Calculators which contain talking devices that are intended
for the use of blind people are subject to tax. However, that portion of the price of
the calculator attributable to the talking device is exempt from tax, if separately
stated on the bill for the calculator.
Opinion
Petitioner sells equipment for visually impaired individuals who are totally blind or who
have limited vision and may be considered legally blind. This equipment is sold to users who are
partially sighted or blind for home use, or to government entities, welfare agencies, libraries,
schools and rehabilitation organizations providing services to individuals with such disabilities.
Essentially, these devices allow visually impaired individuals to “read” printed materials.
For those with limited vision, materials are magnified. For those who are blind, these devices
can “read aloud” electronic files, e-mails, Web pages, etc., as well as printed materials. They
also allow data capture through a regular keyboard configuration, or a Braille keyboard
configuration.
A sales tax exemption is provided for prosthetic aids and artificial devices which are
purchased to correct or alleviate physical incapacity in human beings. See section 1115(a)(4) of
the Tax Law. Prosthetic devices must completely or partially replace a missing body part or the
function of a permanently inoperative or malfunctioning body part, must be primarily and
customarily used for such purposes, and must not be generally useful in the absence of illness,
injury or physical incapacity. See section 528.5(b)(1) of the Sales and Use Tax Regulations.
Petitioner’s equipment appears to replace the function of permanently inoperative or
malfunctioning human eyes. Similar to eyeglasses, Petitioner’s Smartview series of magnifying
devices allow individuals with extremely limited vision to read any printed material. The
BrailleNote (including BrailleNote GPS), VoiceNote, and ScannaR products replace the function
of the human eye for those who are blind by providing a Braille display or reading aloud the
content of the printed material. These products are primarily and customarily used by persons
with severe visual impairment and appear to meet the qualifications of prosthetic devices
pursuant to section 1115(a)(4) of the Tax Law. See Audio Reading Concepts, Adv Op Comm
T&F, January 25, 1995, TSB-A-95(4)S.
Since the BrailleNote and VoiceNote related software is not compatible or functional
with any other computer equipment and Petitioner does not offer or sell these software programs
without the equipment, such related software is a component part of the BrailleNote or
VoiceNote device and, therefore, exempt under section 1115(a)(4) of the Tax Law.

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Petitioner’s products qualify as prosthetic aids pursuant to section 1115(a)(4) of the Tax
Law, and are not subject to sales tax when sold by Petitioner to individuals with impairments or
government entities, welfare agencies, libraries, schools and rehabilitative organizations
providing services to individuals with such disabilities.

DATED: April 27, 2005

NOTE:

/s/
Jonathan Pessen
Tax Regulations Specialist IV
Technical Services Division

The opinions expressed in Advisory Opinions are
limited to the facts set forth therein.