SB349 Alabama 2018 Session

Summary

Primary Sponsor

William “Bill” M. BeasleySenator

Democrat

Session

Regular Session 2018

Title

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

Summary

SB 349 would exempt prescription drugs from Alabama’s business license taxes based on gross receipts, in addition to the existing sales tax exemption.

What This Bill Does

The bill would amend Section 40-23-4.1 to extend the exemption to prescription drugs from gross receipts-based business license taxes. It defines drugs as medicines prescribed by physicians and dispensed by a licensed pharmacist or sold to the patient by the physician. It also states that drugs already exempt from gross sales tax would be exempt from calculating gross receipts for business license taxes. The exemption would take effect immediately after the governor signs the bill.

Who It Affects

• Pharmacies and other businesses that sell prescription drugs would be exempt from business license taxes based on gross receipts for those drugs.
• Physicians who sell prescription drugs directly to patients and licensed pharmacists who dispense them would benefit from the exemption.
• State and local tax authorities would apply this exemption when calculating business license taxes based on gross receipts.

Key Provisions

• Amends Section 40-23-4.1 to extend the prescription drug exemption from gross receipts-based business license taxes.
• Defines 'drugs' as medicines prescribed by physicians and dispensed by licensed pharmacists or sold to the patient by the physician for human consumption.
• Specifies that prescription drugs exempt from gross sales tax are also exempt from calculation of gross receipts for business license taxes.
• States that the exemption applies to state gross sales tax defined in Section 40-23-2.
• Effective immediately following passage and 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