HCS HB 1244 -- SALES TAX EXEMPTION FOR CERTAIN DRUGS AND MEDICAL
EQUIPMENT

SPONSOR:  Sutherland (Sater)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Ways and
Means by a vote of 11 to 0.

This substitute authorizes a state and local sales and use tax
exemption for over-the-counter or nonprescription drugs which are
prescribed by a practitioner or any medical equipment, supplies,
or devices which are ordered by a physician or that are otherwise
paid for by insurance, the federal Medicare Program, or the
Missouri Medicaid Program.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of Unknown
in FY 2011, FY 2012, and FY 2013.  Estimated Cost on Other State
Funds of Unknown in FY 2011, FY 2012, and FY 2013.

PROPONENTS:  Supporters say that as more drugs are moved from
prescription to over-the-counter, pharmacies are confused about
the taxability of these drugs since doctors continue to prescribe
them and insurance companies continue to pay.  The Department of
Revenue has audited pharmacies and assessed taxes on over-the-
counter drugs.

Testifying for the bill were Representative Sater; Missouri
Pharmacy Association; and Missouri Retailers Association.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
95th General Assembly, 2nd Regular Session
Last Updated September 14, 2010 at 3:10 pm