Idahoans see clearly without sales tax
- Sales Tax News
- Jul 13, 2016 | Gail Cole
Aside from getting to wear snazzy frames (and from finding an ideal partner in the dystopian world of “The Lobster”), there aren’t many advantages to being short-sighted. That’s not true anymore — at least in Idaho.
Beginning July 1, 2016, contact lenses purchased with a prescription are exempt from Idaho sales and use tax. They’ll still cost you, but at least they won’t cost you the extra 6% in state sales and use tax. This is thanks to the enactment of H.B. 75.
According to the bill’s fiscal note, the new exemption will reduce the General Fund by approximately $1.42 million in fiscal year 2016 and an additional $1.42 million in fiscal year 2017. In subsequent fiscal years, the loss is expected to be $2.82 million. The exemption was deemed necessary “to align the sales tax of prescription eyeglasses and contacts with that of other prescriptions and medical devices.” Prescription eyeglasses are exempt from sales tax as of July 1, 2015.
Changes in product taxability complicate sales and use tax compliance in all states. Sales tax software-as-a-service simplifies it and reduces audit risk. Learn more.