Over-the-counter drugs that sold by prescription

From the 2024 DOR Tax Exemption Study

82.08.940; 82.12.940 - Over-the-counter drugs that sold by prescription Description Over-the-counter drugs for human use are exempt from sales and use taxes if they are either: - Prescribed directly for patients. - Purchased by hospitals or other medical facilities and prescribed to patients. Purpose Reduces the cost of over-the-counter drugs. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $41.740 $42.130 $42.560 $42.980 Local Taxes $18.770 $18.950 $19.140 $19.330 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $38.620 $42.560 $42.980 Local Taxes $0.000 $17.370 $19.140 $19.330 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate mirrors the population growth rate reflected in the Office of Financial Management's November 2022 forecast. - Local revenue estimates use the statewide average local sales and use taxes rate of 2.92%. - Over-the-counter drugs sold by prescription represent 5% of the prescription drug exemption amounts. Data Sources - Departmen