| Date Requested:March 16, 2005 Time Requested:11:37 AM |
| |||||||||||||||
| FUND(S) General Revenue Fund | |||
|---|---|---|---|
Sources of Revenue | |||
| General Fund | |||
Legislation creates:
Neither Program nor Fund | |||
Effect this measure will have on costs and revenues of state government.
| The stated purpose of this bill is to eliminate the sale of prescription drugs in a physician’s office or clinic from the six percent sales tax.
We are unable to fully quantify the revenue impact from exempting the sale of drugs to be administered in a physician’s office or clinic. However, according to our interpretation, the loss to the General Revenue Fund could be significant. The Tax Department would incur additional administrative costs of roughly $4,000 for printing and promotion. |
| Over-all effect |
| Effect of Proposal | Fiscal Year | ||
|---|---|---|---|
| 2005 Increase/Decrease (use"-") |
2006 Increase/Decrease (use"-") |
Fiscal Year (Upon Full Implementation) | |
| 1. Estmated Total Cost | 4,000 | 0 | 0 |
| Personal Services | 0 | 0 | 0 |
| Current Expenses | 4,000 | 0 | 0 |
| Repairs and Alterations | 0 | 0 | 0 |
| Assets | 0 | 0 | 0 |
| Other | 0 | 0 | 0 |
| 2. Estimated Total Revenues | 0 | 0 | 0 |
|
3. Explanation of above estimates (including long-range effect):
This bill provides an exemption from the consumers sales and service tax for sales of any prescription drugs administered in a physician’s office or clinic.
We are unable to fully quantify the revenue impact from exempting the sale of drugs to be administered in a physician’s office or clinic. However, according to our interpretation, the loss to the General Revenue Fund could be significant. The Tax Department would incur additional administrative costs of roughly $4,000 for printing and promotion. |