HB616 Alabama 2011 Session

Summary

Primary Sponsor

Jim Barton

Republican

Session

Regular Session 2011

Title

Medical tax exemptions, durable medical equipment and medical supplies, exempt from state, county, and municipal sales and use tax, prescription drug exemption from state gross sales tax continued, Sec. 40-9-30.1 added; Sec. 40-23-4.1 repealed

Summary

HB616 would extend tax exemptions to prescription drugs and to durable medical equipment and medical supplies purchased with a prescription, shielding them from state, county, and municipal sales and use taxes.

What This Bill Does

The bill would add a new section (40-9-30.1) to exempt prescription medicines from state gross sales tax. It would also exempt durable medical equipment and medical supplies purchased pursuant to a valid prescription from state, county, and municipal sales and use taxes. It would repeal a duplicative provision (Section 40-23-4.1). The exemptions would apply retroactively to open tax periods and periods where assessments could be entered, with no refunds for periods before the effective date, and the act would take effect on the first day of the third month after passage.

Who It Affects

• Consumers/patients who buy prescription drugs or durable medical equipment/medical supplies with a prescription, who would no longer pay state, county, or municipal sales tax on these items.
• State and local tax authorities (state, county, and municipal) who would lose tax revenue from these exemptions.

Key Provisions

• Adds Section 40-9-30.1 establishing exemption from state gross sales tax for prescription medicines when prescribed and dispensed or sold by a physician.
• Exempts durable medical equipment and medical supplies purchased for use by a patient pursuant to a valid prescription from state, county, and municipal sales and use taxes.
• Repeals Section 40-23-4.1 as duplicative.
• Retroactive application to all open tax periods and periods where assessments could be entered; no refunds for periods prior to the effective date.
• Effective date: first day of the third month after passage and approval by the Governor.

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

Subjects

Taxation