Was the Xerox/Kruzweil Personal Reader exempt when sold, leased, or rented for use by legally blind or dyslexic individuals?

Plain-English summary

The Xerox/Kruzweil Personal Reader was a portable optical scanner that converted typeset or typewritten text into speech.

When sold, leased, or rented for use by a legally blind person, the reader qualified for exemption under Rule 3.284(c)(5). The purchaser had to issue an exemption certificate stating why tax did not apply.

The reader also qualified as a therapeutic appliance or device when sold, rented, or leased under a doctor's prescription to an individual with dyslexia. Rule 3.284(a)(11) covered items designed for treatment of human sickness, disease, suffering, or deformity, and the letter treated dyslexia as a sickness using the medical-dictionary definition quoted in the source.

Common questions

Did the reader qualify for a legally blind user? Yes, with an exemption certificate.

Did it qualify for a dyslexic user? Yes, under a doctor's prescription.

What did the device do? It scanned printed text and converted it to speech.

Citations and references

• 34 Tex. Admin. Code Rule 3.284(a)(11) and (c)(5)

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/8909L0959A04

Original ruling text

COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, TX 78774

September 29, 1989

Dear *:

Thank you for your letter of September 14, 1989, concerning the
taxability of Xerox/Kruzweil Personal Reader for the blind,
visually impaired and dyslexic.

The Xerox/Kruzweil Personal Reader, a portable optical scanner
that reads typeset or typewritten text and turns it into speech,
qualifies for exemption under section (c)(5) of Rule 3.284 (Drugs,
Medicines, Medical Equipment and Devices) when sold, leased, or
rented for use by the legally blind. An exemption certificate is
required, meaning the purchaser must issue an exemption certifi-
cate stating the reason sales tax does not apply to the sale,
lease, or rental.

The Xerox/Kruzweil Personal Reader does qualify for exemption as
a therapeutic appliance or device when sold, rented, or leased
under a doctor's prescription to an individual with dyslexia.
Therapeutic appliance or device is defined in section (a)(11) of
the rule as "any item designed to alleviate pain or designed for
use during the treatment or cure of human sickness, disease, suf-
fering or deformity." While dyslexia is not readily classified
as a sickness, the condition is a sickness as that term is defined
in Stedman's Medical Dictionary as "an ...interruption...or dis-
order of body functions, systems, or organs."

This opinion is based on the facts presented. If there are addi-
tional or different facts, the opinion may change.

If you have any questions or need more information, you may call
toll-free 1-800-252-5555, ext. 3-4683. The regular number is 512/
463-4600. You may write me at Tax Correspondence, Comptroller of
Public Accounts.

Sincerely,
Eddie C. Washington
Tax Correspondence