Dietary supplements

From the 2024 DOR Tax Exemption Study

82.08.925; 82.12.925 - Dietary supplements Description Dietary supplements for human use, dispensed to patients pursuant to a prescription, are exempt from sales and use taxes. Purpose To lessen the cost of prescribed dietary supplements. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $11.880 $12.320 $12.760 $13.200 Local Taxes $5.340 $5.540 $5.740 $5.940 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $11.300 $12.760 $13.200 Local Taxes $0.000 $5.080 $5.740 $5.940 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate mirrors the sales tax growth rate reflected in the Economic and Revenue Forecast Council's March 2023 forecast. - 10% of the dietary supplements purchased are prescribed. - Local revenue estimates use the statewide average local sales and use taxes rate of 2.92%. Data Sources - Economic and Revenue Forecast Council, March 2023 forecast - Nutrition Business Journal, 2015 Supplement Business Report - U.S. Census, Population data Additional A