Prescription drug administration

From the 2024 DOR Tax Exemption Study

Det. No. 12-0388, 32 WTD 267 (October 29, 2013) 268 2. May a taxpayer that is not licensed with the Washington board of pharmacy qualify for the preferential rate under RCW 82.04.272 when the taxpayer is registered with a comparable agency of another state, or when the carrier that delivers the taxpayer’s products is registered with the Washington board of pharmacy? FINDINGS OF FACT Taxpayer is a . . . pharmaceutical company specializing in wholesale sales of prescription drugs . . . . Taxpayer is a wholly-owned subsidiary of its . . . parent company . . . . Taxpayer does not manufacture any of the pharmaceutical products it sells. Taxpayer purchases the drugs it warehouses and sells from [its parent company] which manufacturers the pharmaceuticals overseas. Taxpayer maintains its inventory in a warehouse located in [State A]. Taxpayer distributes and sells product only in the United States. Its customers are pharmaceutical wholesalers, retailers, and health care providers. None of the products Taxpayer warehouses and resells is classified by the DEA as a controlled substance.2 Thus, Taxpayer is not required to register with the DEA,3 and Taxpayer is not in fact registered with the