SB272 Alabama 2011 Session

Summary

Primary Sponsor

Tammy Irons

Democrat

Co-Sponsors

William “Bill” M. BeasleyTrip PittmanPriscilla DunnBill HoltzclawBryan TaylorJerry L. Fielding

Session

Regular Session 2011

Title

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

Summary

SB272 would extend the prescription drug exemption from sales tax to also exempt prescription drugs from business license taxes based on gross receipts.

What This Bill Does

Amends Section 40-23-4.1 to add an exemption so prescription drugs exempt from gross sales tax are also exempt from business license taxes calculated on gross receipts. Defines drugs as medicines prescribed by a physician when filled by a licensed pharmacist or sold to the patient by the physician for human use. Clarifies that the exemption applies to state gross sales tax and, by extension, to gross receipts-based business license taxes for those drugs. Takes effect immediately after the bill is passed and approved by the Governor.

Who It Affects

• Pharmacies, clinics, and physicians that have business license taxes based on gross receipts, who would not pay those taxes on prescription drug revenue.
• State and local tax authorities who administer or collect business license taxes based on gross receipts, as the tax base for prescription drugs would be exempt.

Key Provisions

• Adds prescription drugs to the list of items exempt from gross receipts calculations for business license taxes based on gross receipts.
• Keeps existing exemption for prescription drugs from state gross sales tax and extends that exemption to the corresponding gross receipts-based license taxes.
• Defines 'drugs' to include medicines prescribed by physicians when filled by a licensed pharmacist or sold to the patient by the physician for human consumption.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Prescription Drugs