Prescription drugs

From the 2024 DOR Tax Exemption Study

82.08.0281; 82.12.0275 - Prescription drugs Description Drugs prescribed for use by humans, drugs and devices prescribed for birth control, and drugs and devices for birth control that are dispensed by certain family planning clinics are exempt from sales and use taxes, as long as the drugs are prescribed by a physician. In addition, drugs and devices for birth control that are supplied by a family planning clinic that is under contract with the Department of Health to provide family planning services are exempt from sales and use taxes. The exemption is available for all levels of sales and distribution. It is not required that a hospital or physician make a specific charge to the patient for prescription drugs dispensed under a physician's order. Purpose To reduce the cost of health care. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $734.700 $762.200 $797.700 $833.000 Local Taxes $330.400 $342.800 $358.700 $374.600 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $698.600 $797.700 $833.000 Local Taxes $0.000 $314.200 $3