HB58 Alabama 2017 Session

Summary

Primary Sponsor

Ron Johnson

Republican

Session

Regular Session 2017

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 exemption from gross sales tax to also exempt prescription drugs from business license taxes based on gross receipts.

What This Bill Does

If enacted, prescription drugs would be exempt from state gross receipts-based business license taxes. This builds on the existing exemption from gross sales tax. The definition of drugs covers medicines prescribed by doctors and dispensed by a licensed pharmacist or sold to patients by the physician. The effect is that pharmacies and physicians who dispense prescription drugs would not pay those license taxes on the drug portion.

Who It Affects

• Pharmacies and other businesses that dispense prescription drugs would not have those drugs counted toward gross receipts for business license taxes.
• Physicians who sell prescription drugs directly to patients would similarly be exempt from gross receipts-based business license taxes on those drugs.

Key Provisions

• Exempts prescription drugs from state gross receipts-based business license taxes (in addition to existing gross sales tax exemption).
• Expands the drug exemption to include the calculation of gross receipts for business license taxes under Article 2, Section 11-51-90 et seq.
• Defines drugs to include medicines prescribed by physicians when filled by a licensed pharmacist or sold to the patient by the physician.
• Effective date: immediately after 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

Prescription Drugs