SB329 Alabama 2016 Session

Summary

Primary Sponsor

William “Bill” M. BeasleySenator

Democrat

Session

Regular Session 2016

Title

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

Summary

SB329 would extend the prescription drug tax exemption to also cover business license taxes based on gross receipts.

What This Bill Does

It would amend the code to exempt prescription drugs from state gross receipts-based business license taxes, in addition to their existing exemption from gross sales tax. The definition of drugs would include medicines prescribed by physicians when filled by a licensed pharmacist or sold to the patient by the physician. The change takes effect immediately after the governor signs it.

Who It Affects

• Pharmacies and physicians who dispense prescription drugs would be exempt from business license taxes based on gross receipts for those drugs.
• Patients receiving prescription drugs could benefit indirectly if lower tax burdens on providers lead to lower costs or prices.

Key Provisions

• Amends Section 40-23-4.1 to extend the exemption to prescription drugs from gross receipts-based business license taxes.
• Defines drugs as medicines prescribed by physicians that are filled by a licensed pharmacist or sold to the patient by the physician.
• Specifies the exemption applies to state gross sales tax and to business license taxes based on gross receipts as provided by law; becomes effective immediately upon 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

Prescription Drugs