HB22 Alabama 2015 1st Special Session

Summary

Primary Sponsor

Tim WadsworthRepresentative

Republican

Session

First Special Session 2015

Title

Prescriptions, privilege tax on pharmaceutical service providers, minimum amount requirement removed, Sec. 40-26B-2 am'd.

Summary

HB22 would raise the privilege tax on pharmaceutical service providers from 10 cents to 31 cents per prescription to support indigent health care and Medicaid.

What This Bill Does

The bill amends the law to set the tax at 31 cents per prescription filled or refilled. The tax applies to the business activities of every provider of pharmaceutical services in Alabama, with exemptions for hospital inpatient pharmacies and pharmacies owned or operated by the State or its agencies. The tax is in addition to all other taxes. It becomes effective immediately after passage and the governor's approval, and the revenue is intended to support indigent health care, the Medicaid program, and expansion of medical services.

Who It Affects

• Pharmaceutical service providers (pharmacies and other providers) would pay a higher privilege tax of 31 cents per prescription.
• Hospitals' inpatient pharmacies and state-owned pharmacies would be exempt from the tax.

Key Provisions

• Increase the per-prescription privilege tax from 10 cents to 31 cents.
• Tax applies to the business activities of providers of pharmaceutical services serving Alabama citizens, with exemptions for hospital inpatient pharmacies and state-owned/agency pharmacies.
• The tax is in addition to all other taxes.
• Effective immediately after passage and the governor's approval.
• The tax revenue is intended to support indigent health care, the Medicaid program, and the expansion of medical services.

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