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BTLG Table of Contents > Sales and Use Tax Annotations > G > 295.0000 Gross Receipts > Annotation 295.0647

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G

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295.0000 Gross Receipts

Annotation 295.0647

(a) General

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295.0647 Sale of Low Vision Aids and Training Packages. A taxpayer dispenses low vision aids and provides training and rehabilitation services. The aid is a prosthetic device that enhances the vision of the legally blind. Each time a device is sold, the taxpayer also sells a training package on how to use the device. This training package is sold as a separate item and at an additional cost to the patient. The training is performed by both licensed and nonlicensed health care providers such as opticians, optometrists, clinical assistants, and occupational therapists.

If the customer must purchase the training package as a condition to the purchase and/or functional use of the device, then the training package is mandatory and a service that is part of the sale of tangible personal property. If so, the taxable gross receipts for the sale of the device would include the charge for the training package.

If the purchaser may purchase the device without also purchasing the training package, then the training is optional. If so, the application of the tax to the charges for the training depends on whether the training itself is a sale for tangible personal property, in whole or in part. If the training consists only of the providing of training material, the entire charge is taxable. If, however, the taxpayer performs significant training services and bills lump sum, then no tax applies to that lump-sum charge for training. The taxpayer would be the consumer of the classroom material it provides and tax would apply to the sale of these materials to the taxpayer. If, instead, the taxpayer makes a separate charge for the materials it provides to its customers as part of the training (such as video tapes, pamphlets and books), it would be the retailer of any such material and sales tax would apply to that separate charge. 10/18/96.