Sales Tax State Activity Update - June 2005

New York Looks at Visual Aid Devices

The Department of Taxation and Finance has issued an Advisory Opinion to discuss the taxability of various equipment used by visually impaired persons. The items in question are sold for home use, government entities, welfare agencies, libraries, schools, and rehabilitation organizations to fully or partially blind individuals.

The products sold by the taxpayer include Video Magnifiers, Pocket Viewers, Braille/Voice Equipment and related software, and Scanning Equipment. Such devices permit the visually handicapped to "read" printed materials. For those with limited sight, the materials can be greatly magnified. For those with complete blindness, these devices can "speak" the printed text, as well as electronic files, e-mails, Web pages, etc. Data can also be stored by the impaired individual through a Braille keyboard or regular keyboard configuration. The data can then be retrieved through either a Braille display or simulated voice output.

Section 1115(a)(4) of the Tax Law provides an exemption for prosthetic aids, hearing aids, eyeglasses and artificial devices purchased to correct or alleviate physical incapacity in human beings. Section 528.5(b) of the Sales and Use Tax Regulations notes that such property must either completely or partially replace a missing body part or the function of a permanently inoperative or permanently 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.

The equipment at issue serves to replace the function of permanently inoperative or malfunctioning eyes. The devices are primarily and customarily used by visually impaired individuals and would not be useful to individuals with normal vision. Therefore, the taxpayer's products are exempt from tax according to Section 1115(a)(4) of the Tax Law.

The full text can be viewed here.

(TSB-A-05(14)S , New York Commissioner of Taxation and Finance, 04/27/2005 )

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