HB303 Alabama 2011 Session

Summary

Primary Sponsor

Ron Johnson

Republican

Session

Regular Session 2011

Title

Drugs, prescription, exempt from business license tax based on gross receipts, Sec. 40-23-4.1 am'd.

Summary

HB303 would extend prescription drug exemptions from sales tax to also exempt prescription drugs from business license taxes based on gross receipts.

What This Bill Does

The bill amends the drug tax exemption to include prescription drugs under business license taxes based on gross receipts. It defines drugs to include medicines prescribed by doctors when filled by a licensed pharmacist or sold to the patient by the physician. It states that drugs exempt from gross sales tax are also exempt from calculating gross receipts for such business taxes. The change would take effect immediately after the Governor's approval.

Who It Affects

• Pharmacies and other businesses that dispense prescription drugs, which would be exempt from gross receipts-based business license taxes for those drugs.
• Physicians who sell prescription drugs directly to patients, who would also be exempt from such business license taxes.
• Businesses subject to gross receipts-based business license taxes that deal with prescription drugs.

Key Provisions

• Amends Section 40-23-4.1 to include an exemption from gross receipts-based business license taxes for prescription drugs, in addition to existing gross sales tax exemptions.
• Defines 'drugs' to include medicines prescribed by physicians when the prescription is filled by a licensed pharmacist or sold to the patient by the physician for human consumption.
• Specifies that prescription drugs exempt from gross sales tax are also exempt from calculation of gross receipts for business license taxes based on gross receipts.
• Effective date: immediately after passage and approval by the Governor (or when law otherwise becomes effective).

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Prescription Drugs