HB58 Alabama 2016 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Ron Johnson
Republican
Session: Regular Session 2016
Title: Drugs, prescription, exempt from business license tax based on gross receipts, Sec. 40-23-4.1 am'd.
Summary: HB58 would extend the prescription drug tax exemption to include exemption from business license taxes based on gross receipts.
What This Bill Does
The bill amends Section 40-23-4.1 to include prescription drugs under the exemption from business license taxes that are based on gross receipts. It already exempts prescription drugs from gross sales tax; this bill adds an exemption from calculating gross receipts for those business license taxes as well. In effect, pharmacies and physicians who dispense prescription drugs would not owe gross-receipts-based business license taxes for those drugs. The change would take effect immediately after the governor signs it into law.

Who It Affects
Pharmacies and physicians who dispense prescription drugs would be exempt from gross receipts-based business license taxes for those drugs.
State and local government revenue authorities would potentially collect less in gross receipts-based business license taxes on prescription drug sales.

Key Provisions
Defines drugs to include any medicine prescribed by physicians when filled by a licensed pharmacist or sold to the patient by the physician for human consumption.
Maintains exemption from gross sales tax for prescription drugs and adds an exemption from the calculation of gross receipts for business license taxes based on gross receipts for those drugs.
Amends Section 40-23-4.1 of the Code of Alabama 1975 accordingly.
Effective immediately following passage and approval by the Governor, or otherwise becoming law.

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