Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-6-5 - USE TAX LAW; CONTRACTORS GROSS RECEIPTS TAX; LODGINGS TAX; RENTAL TAX; UTILITY TAXES; MISCELLANEOUS RULES › Section 810-6-5-.27 - Pharmaceutical Providers Tax

Current through Register Vol. 42, No. 9, June 28, 2024
(1) The
			 term "pharmaceutical providers tax" as used in this regulation shall mean the
			 privilege tax levied in Section
			 40-26B-2,
Code of Ala. 1975
, upon every provider of
			 pharmaceutical services to citizens of Alabama.
(2) Unless otherwise defined herein, the
			 definitions of terms set forth in
Code of Ala. 1975
,
			 Section 40-26B-l, are incorporated by reference herein.
(3) Section
			 40-26B-2 levies a privilege tax on the business activities of every provider of
			 pharmaceutical services to Alabama citizens except a pharmacy, or portion
			 thereof, serving hospital inpatients or pharmacies owned or operated by the
			 State of Alabama or an agency thereof. The rate of this tax is 10 cents for
			 each prescription filled or refilled for an Alabama citizen with a retail price
			 of $3.00 or more.
(4) On and after
			 July 1, 2002, the rate of this tax is 10 cents for each prescription filled or
			 refilled for an Alabama citizen, regardless of retail price. (Act No.
			 2002-414)
(5) Hospital inpatient
			 pharmacies are excluded from the levy of the pharmaceutical providers tax.
			 Accordingly, prescriptions filled or refilled by hospital inpatient pharmacies
			 including prescriptions filled or refilled for emergency room patients
			 receiving an emergency supply of medication, hospital staff personnel, and
			 workman's' compensation patients are not taxable under Section
			 40-26B-2.
(6) Prescriptions filled or refilled by state
			 mental health facilities, mental health centers organized pursuant to
Code of Ala. 1975
, Section 22-51-l,
et
seq
., and county health
			 departments are not taxable under Section
			 40-26B-2.
(7) The pharmaceutical providers tax does not
			 apply to prescriptions filled or refilled for persons who are not citizens of
			 Alabama. The provider's books and records must contain sufficient documentation
			 to substantiate claims of tax-exempt sales to noncitizens of Alabama.
(8) When a pharmaceutical provider receives a
			 "co-pay" amount from the patient and the balance of the selling price from an
			 insurance company, the total amount received from both the patient and the
			 insurance company constitutes the retail price of the prescription.
(9) Any pharmaceutical provider filling or
			 refilling both taxable and nontaxable prescriptions shall pay the tax due on
			 taxable prescriptions filled or refilled when said provider's books are kept so
			 as to show separately the number of taxable and nontaxable prescriptions filled
			 or refilled. When the books are not so kept, the pharmaceutical provider shall
			 pay tax on all prescriptions filled or refilled.
(10) The pharmaceutical providers tax shall
			 be due and payable in monthly installments on or before the twentieth day of
			 the month next succeeding the month in which the tax accrues. Every
			 pharmaceutical provider shall prepare and forward to the Department, within the
			 time prescribed by law, a return for each calendar month using forms furnished
			 by the Department. Pharmaceutical providers tax returns shall require the
			 following information:
(a) Taxpayer's tax
			 account number, legal name, and complete address,
(b) Period covered by the return and due date
			 of the return,
(c) The total number
			 of prescriptions filled or refilled,
(d) The number of nontaxable prescriptions
			 filled or refilled,
(e) The total
			 number of taxable prescriptions filled or refilled,
(f) Gross tax due,
(g) Penalties due, if applicable,
(h) Interest due, if applicable,
(i) Credits claimed, if any,
(j) Total amount due,
(k) Total amount remitted,
(l) An indication if payment of tax is made
			 through electronic funds transfer (EFT), and
(m) Taxpayer's signature, title, and date
			 signed.
Every pharmaceutical provider shall file only one return for
				all business units or locations filling or refilling taxable
				prescriptions.