HB1717
To Exempt Over-the-counter Drugs Prescribed By A Medical Professional From Sales And Use Tax; And To Clarify Which Medical Professionals May Prescribe Drugs That Are Exempt From Sales And Use Tax.
Last Action (May 1, 2023): Died in House Committee at Sine Die Adjournment
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AI-Generated Summary
House Bill 1717 amends Arkansas tax law to broaden the sales and use tax exemption for certain medical products. The bill provides a tax exemption for over-the-counter drugs when they are prescribed by a licensed healthcare professional for human use. It explicitly defines 'healthcare professional' to include a broad range of providers with prescriptive authority, such as physicians, dentists, podiatrists, osteopaths, physician assistants, nurse practitioners, advanced practice registered nurses, and pharmacists. Additionally, the bill maintains existing exemptions for prescription drugs and oxygen. The Secretary of the Department of Finance and Administration is authorized to adopt rules to ensure the efficient administration of these exemptions and prevent potential abuse. The legislation is set to become effective on the first day of the calendar quarter following the bill's enactment.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries are Arkansas residents who require over-the-counter medications for medical conditions, as they would no longer pay sales tax on these items when prescribed by a healthcare provider. Additionally, healthcare professionals and the diverse group of practitioners identified in the bill benefit from clearer, expanded authorization to provide these prescriptions, potentially facilitating better patient access to necessary treatments.
Who Might Suffer?
The state government of Arkansas would be the primary entity negatively impacted, as the bill reduces the total amount of sales and use tax revenue collected. This decrease in tax collections could potentially impact state and local budgets that rely on sales tax proceeds to fund public services and infrastructure projects.
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