SB31 Alabama 2017 Session

Updated Feb 27, 2026

Low Interest

Summary

Primary Sponsor: William “Bill” M. BeasleySenator
Democrat
Session: Regular Session 2017
Title: Drugs, prescription, exempt from business license tax based on gross receipts, Sec. 40-23-4.1 am'd.
Summary: SB31 would extend the prescription drug tax exemption to also cover business license taxes based on gross receipts.
What This Bill Does
It defines drugs as medicines prescribed by physicians when dispensed by a licensed pharmacist or sold by the physician for human use. It adds prescription drugs to the list of items exempt from gross receipts-based business license taxes, in addition to the existing exemption from gross sales tax. The exemption applies under the relevant state tax code (Article 2, Chapter 51, Title 11) or other applicable law and becomes law immediately after the governor approves it.

Who It Affects
Pharmacies, hospitals, and other businesses that sell prescription drugs would no longer owe business license taxes based on gross receipts for those drugs.
State and local governments could see reduced revenue from business license taxes on prescription drug sales.

Key Provisions
Amends Section 40-23-4.1 to include prescription drugs in the exemption from business license taxes based on gross receipts.
Keeps the existing exemption from gross sales tax for prescription drugs and extends it to gross receipts-based business license taxes.
Defines drugs to include medicines prescribed by physicians when filled by a licensed pharmacist or sold to the patient by the physician for human use.
Effective immediately following 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: Prescription Drugs