Indiana Optometric Association

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Indiana sales tax issues arise
Click here to obtain a Form ST-105 (General Sales Tax Exemption Form)

Click here to obtain a TID (tax identification number) if you do not already have one

Two separate issues concerning Indiana sales tax have arisen due to changes in internal procedures at the Indiana Department of Revenue.  While state law has not changed with regard to tax-exempt healthcare items, optometrists may have to become familiar with a state tax form they previously did not have to use.

 

During the summer, the Indiana Department of Revenue began contacting out-of-state frame vendors and informing them that they must collect a General Sales Tax Exemption Certificate (Form ST-105) for tax exempt purchases or collect the Indiana state sales tax at the time of purchase.  In turn, the vendors have begun to request Form ST-105s from Indiana optometrists.  To obtain a Form ST-105, click here.

 

More recently some healthcare providers, including optometrists, received notices from the Indiana Department of Revenue alleging they owe the State of Indiana approximately $7,500.00 for not filing their Sales and Use Tax Voucher (ST-103).  If you have received such a notice, be sure to talk with your accountant or tax preparer because it appears the Department may have lost ST-103s which were filed this year.  It is important that you clear this matter up because the Indiana Department of Revenue plans to begin using private collection agencies in 2007 to collect taxes owed to the state. 
 
Indiana Statute Concerning Tax-Exempt Medical Items
IC 6-2.5-5-18 - Medical equipment, supplies, and devices

Sec. 18. (a) Sales of durable medical equipment, prosthetic devices, artificial limbs, orthopedic devices, dental prosthetic devices, eyeglasses, contact lenses, and other medical supplies and devices are exempt from the state gross retail tax, if the sales are prescribed by a person licensed to issue the prescription....