SB507 Alabama 2015 Session

Summary

Primary Sponsor

Rodger SmithermanSenator

Democrat

Session

Regular Session 2015

Title

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

Summary

SB507 would raise the privilege tax on pharmaceutical service providers from 10 to 25 cents per prescription filled or refilled for Alabama citizens to help fund indigent health care and Medicaid.

What This Bill Does

It increases the per-prescription tax from 10 to 25 cents. The tax applies to providers of pharmaceutical services to Alabama citizens, with exemptions for hospital inpatient pharmacies and state-owned pharmacies. The tax is in addition to all other taxes and the change takes effect immediately after the Governor signs the bill into law.

Who It Affects

• Providers of pharmaceutical services to Alabama citizens (e.g., private pharmacies and other drug providers) will pay a higher tax per prescription (25 cents instead of 10 cents).
• Hospitals' inpatient pharmacies and pharmacies owned or operated by the State of Alabama or its agencies are exempt from the tax.

Key Provisions

• Raise the per-prescription privilege tax from 10 cents to 25 cents for each prescription filled or refilled for a citizen of Alabama.
• Apply the tax to providers of pharmaceutical services to Alabama citizens, with exemptions for hospital inpatient pharmacies and state-owned pharmacies.
• Tax is in addition to all other taxes under law.
• Amends Section 40-26B-2 of the Alabama Code 1975 to implement the change.
• Revenue from the tax is intended to support indigent health care, the Medicaid program, and the maintenance and expansion of medical services; becomes effective immediately after the Governor's approval.

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