Drug delivery systems

From the 2024 DOR Tax Exemption Study

82.08.935; 82.12.935 - Drug delivery systems Description Disposable devices used to deliver drugs for human use are exempt from sales and use taxes. This includes single use items such as syringes, tubing, and catheters. Purpose To reduce the cost of single use drug delivery systems. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $2.534 $2.624 $2.724 $2.815 Local Taxes $1.140 $1.180 $1.220 $1.270 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $2.404 $2.724 $2.815 Local Taxes $0.000 $1.080 $1.220 $1.270 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate mirrors the sales and use taxes growth rate reflected in the Economic and Revenue Forecast Council's March 2023 forecast. - Local revenue estimates use the statewide average local sales and use taxes rate of 2.92%. - One fourth of the population uses some type of drug delivery system each year. Data Sources - Economic and Revenue Forecast Council, March 2023 forecast - Health Care Authority, Ostomy an