By Ally Stoeger, OD 
For consumers, one attraction to Internet shopping isbuying goodstax–free. This is a point of great controversy as brick-and-mortar stores complain that online merchants have a competitive advantage because they don’t have to collect sales tax.In addition, cash-strapped statessay they are being cheated out ofsubstantial tax revenue when consumers buy online instead of locally. This is coming to a head in California, where the state seeks sales tax from online retailers–and where Amazon.com is fighting that effort with support for a referendum.There is also the specter of a federal ruling on this hot-button issue.
Sandy Kennedy, president of the Retail Industry Leaders Association, outlines the group’s argument in a letter to the editor of the Wall Street Journal:“To suggest that Amazon shouldn’t have to collect sales tax because it doesn’t use local services is simply a ruse. Nobody is asking Amazon to pay property tax on storefronts that don’t exist.The sales tax is a tax on consumption, and it shouldn’t matter if you buy a product in a store or online—the sales tax should apply equally.”
As eyecare professionals, we need to be informed of the laws regarding sales tax, and we need to monitor changing laws. In some states, eyewear is considered a medical appliance not subject to sales tax whether the consumer buys prescription glasses or contact lenses online or at your practice. In other states, eyewear is taxed, but an eye exam is not.
The problem, as always, is perception. Consumers maygo online to buy eyewearbecause they assume theycan skipsales tax on glasses or contact lenses that they would have to pay if they bought that same eyewear at your dispensary. That perception–oftenincorrect–can hurt your bottom line.
If you are able to offer eyewear free from sales tax (just like on the Internet, at least for now), tell your patients so. Include this information on your welcome forms, billing statements, receipts, brochures, bulletin boards, web sites and other practice information centers.For patients who are thinking about ordering eyewear online, this may be the determining factor that keeps them buying from you.
Ally Stoeger, OD, is a practicing optometrist, a practice consultant, and a developer of resources for optometrists on www.RealPracticeToday.com. You can reach her at 703-999-9279.
