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New Sales Tax Exemptions for Idaho


 Idaho: Sales tax exemptions for corrective lenses to be phased in over the next two years.

 

Idaho lawmakers have exempted from sales tax several products related to vision and hearing. Effective July 1, 2015, eyeglasses and eyeglass component parts are exempt from Idaho sales tax, as are hearing aid accessories. Effective July 1, 2016, contact lenses will also be exempt.

In order for these exemptions to be valid, they must be “administered or distributed by a practitioner or when purchased by or on behalf of an individual for use by such individual under a prescription or work order of a practitioner.” See the full text of House Bill 75 for additional details.

Idaho Governor Butch Otter did not sign the legislation and expressed concern over its fiscal impact. He urged the Tax Commission, the Division of Financial Management, and all legislators to “closely monitor the actual fiscal impacts with an eye toward a continuous practice of prioritization and judicious use of General Fund dollars.” Yet he also said the following:

“I support exempting eyeglasses, eyeglass components and contact lenses from Idaho’s 6-percent sales tax. These are the last medical devices subject to the State sales tax, and there is no justification for that to continue” (House Journal of the Idaho Legislature).

Facilitate management of sales tax exemptions and exemption certificates by implementing automated sales tax Software-as-a-Service. Learn more.

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Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.