NOTICE 04-05
SALE OF HEARING AIDS
Beginning January 1, 2005, the sale of hearing aids, as defined by K.S.A. 74- 5807(c), and replacement parts thereto, including batteries, by a person licensed in the practice of dispensing and fitting hearing aids pursuant to the provisions of K.S.A. 74-5808, will be exempt from Kansas state and local sales (and use) taxes pursuant to 2004 Senate Bill 147. Purchasers of hearing aids, replacement parts and batteries will no longer need a written prescription from a person licensed in the healing arts in order for purchases of those items to qualify for the sales tax exemption. However, the retailer must be a person licensed in the practice of dispensing and fitting hearing aids pursuant to the provisions of K.S.A. 74-5808, in order for such retailer's sales of hearing aids, replacement parts and batteries to qualify for exemption.
The service of repairing, maintaining, servicing or altering hearing
aids is taxable,
pursuant to K.S.A. 79-3603(q). If a separate fee is charged by
the retailer for the
repair, maintenance, service or alteration of the hearing aid,
the appropriate Kansas
sales tax(es) must be collected on the respective charge.
As an example, individual T goes to retailer B and requests the retailer repair his hearing aid. Individual T had originally purchased the hearing aid from retailer B, a person licensed to dispense and fit hearing aids pursuant to K.S.A. 74-5808. Retailer B replaces the battery and performs repair service to the hearing aid. Retailer B charges individual T $10.00 for the replacement battery and $7.00 for the repair service. In this example, retailer B must charge the appropriate Kansas sales tax(es) on the $7.00 repair service fee, but would not charge sales tax on the replacement battery.
K.S.A. 74-5808 provides: “No person shall engage in the sale of or practice of dispensing and fitting hearing aids or display a sign or in any other way advertise or hold himself out as a person who practices the dispensing and fitting of hearing aids unless he holds a current, unsuspended, unrevoked license issued by the board as provided in this act, or unless he holds a current, unsuspended, unrevoked certificate of endorsement pursuant to K.S.A. 74- 5814. The license or certificate required by this section shall be kept conspicuously posted in his office or place of business at all times.”
Taxpayer Assistance. If you have questions about this notice, please contact the department at (785)-368-8222. Copies of this notice are available on our web site, www.ksrevenue.org, or may be ordered by voice mail at (785) 296-4937.