HB698 By Representative Beech RFD Ways and Means General Fund Rd 1 26-MAY-15

SYNOPSIS: Under existing law, there is a privilege tax upon providers of pharmaceutical services. This bill will increase the tax from 10 cents to 25 cents for each prescription filled or refilled for a citizen of Alabama.

A BILL TO BE ENTITLED AN ACT

Relating to the privilege tax upon providers of pharmaceutical services; to amend Section 40-26B-2 of the Code of Alabama 1975, to increase the tax from 10 cents to 25 cents for each prescription filled or refilled for a citizen of Alabama.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:Section 1. Section 40-26B-2, Code of Alabama 1975, is amended to read as follows:

§40-26B-2.

"To provide further for the availability of indigent health care, the operation of the Medicaid Program and the maintenance and expansion of medical services thereunder, there is hereby levied and shall be collected as provided in this article a privilege tax on the business activities of every provider of pharmaceutical services to the citizens of Alabama, except for a pharmacy, or portion thereof, serving hospital inpatients or pharmacies owned or operated by the State of Alabama or an agency thereof. The privilege tax imposed by this article is in addition to all other taxes of any kind now imposed by law, and shall be at the rate of 10 25 cents for each prescription filled or refilled for a citizen of Alabama."

Section 2. This act shall become effective immediately following its passage and approval by the Governor, or its otherwise becoming law.

Taxation

Sales and Use Tax

Prescription Drugs

Pharmacies and Pharmacists

Medicaid Agency

Drugs

Code Amended