SALES AND USE TAX EXEMPTIONS:

ALL PRESCRIBED CONTACT LENSES



House Bill 5301

Sponsor: Rep. Michael Kowall


House Bill 5434

Sponsor: Rep. Gerald Law


Committee: Tax Policy


Complete to 4-11-00



A SUMMARY OF HOUSE BILL 5301 AS INTRODUCED 2-8-00 AND HOUSE BILL 5434 AS INTRODUCED 2-22-00


Under both the General Sales Tax Act and the Use Tax Act eyeglasses are exempt from taxation if prescribed or dispensed to correct a person's vision by an ophthalmologist, optometrist, or optician. Contact lenses are exempt only if prescribed for a specific disease that precludes the use of eyeglasses. The bills would remove the qualifying language and provide sales and use tax exemptions for all contact lenses purchased on a written prescription.


MCL 205.54a



















Analyst: C. Couch


This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.