Sales, Use and International Tax Activity Update - January 2012

Colorado Reframes the Taxability of Vision Correction

The Colorado Department of Revenue has amended Special Regulation SR 33 due to the passage of House Bill 11-1091.

The change to SR 33 is that Corrective eyeglass (including sunglasses and reading glasses), frames sold in connection with corrective lenses, contact lenses, and similar articles that optically correct a person's vision are exempt from sales and use tax, regardless of whether the article was dispensed pursuant to a prescription.

Prior to this amendment, the sales and use of eyeglasses, frames, contact lenses and other similar items were exempt as prosthetic devices if they were dispensed pursuant to a prescription or similar written direction by a member of the healing arts profession.

Other changes to SR 33 include binoculars, telescopes, single lens magnifying devices, and contact lenses that have only a cosmetic purpose not being exempt, as well as clarification as to when cases for eyeglasses and contact lenses are exempt.

Revised SR 33 can be found on: the Official Colorado State Portal website.

House Bill 11-1091 can be found on: the Colorado General Assembly website.

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