HB8 Alabama 2015 2nd Special Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Elaine Beech
Democrat
Session: Second Special Session 2015
Title: Prescription drugs, privilege tax, supplemental tax, distrib., approval of increase by Centers for Medicare and Medicaid Services (CMS)
Summary: HB8 creates a temporary 15-cent supplemental privilege tax on each prescription filled or refilled for Alabama citizens, effective August 1, 2015 and collected in fiscal years 2016–2017, tied to CMS FMAP eligibility.
What This Bill Does
It adds a 15-cent supplemental privilege tax on pharmaceutical providers for each prescription filled or refilled for Alabama citizens, collected during fiscal years 2016 and 2017. The tax is in addition to existing taxes and excludes certain inpatient hospital pharmacies and state-owned pharmacies. Revenue is intended to be eligible for FMAP to support Medicaid, and the tax would stop if CMS determines it is not FMAP-eligible or if the related dispensing fee increase is not approved; the state must pursue a Medicaid State Plan amendment to raise the dispensing fee, with a target effective date of October 1, 2015, and the tax would also stop if the dispensing fee is reduced below the proposed amount. The tax ends no later than September 30, 2017 unless the Legislature enacts a continuation.

Who It Affects
Providers of pharmaceutical services (pharmacies and similar entities) in Alabama would owe a 15-cent tax per prescription for Alabama citizens, with exemptions for inpatient hospital pharmacies or state-owned pharmacies.
Alabama residents who rely on Medicaid and the state’s Medicaid program would be affected indirectly, as the revenue is tied to increasing the dispensing fee paid to pharmacies, subject to CMS approval and FMAP eligibility, and the tax would end if those conditions are not met.

Key Provisions
Creates a supplemental privilege tax of 15 cents per prescription filled/refilled for Alabama citizens, effective August 1, 2015, for fiscal years 2016-2017.
Tax is collected and administered like existing privilege taxes and excludes certain inpatient hospital pharmacies and state-owned pharmacies.
Tax revenue must be FMAP-eligible; tax ceases if CMS determines not eligible.
Requires Medicaid State Plan amendment to increase the pharmacy dispensing fee; if CMS approves, implement by Oct 1, 2015; if not approved, tax ends.
Tax ceases if the dispensing fee is reduced below the proposed increase.
Tax ceases by September 30, 2017 unless legislature enacts continuation.
Act becomes effective immediately upon 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