Date Requested:February 15, 2011
Time Requested:10:29 AM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2011R2343 Introduced HB2946
CBD Subject: REQUIRE A PRESCRIPTION FOR CERTAIN DRUGS
FUND(S)
General Revenue Fund
Sources of Revenue
General Fund
Legislation creates:
A New Program

Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

    The stated purpose of this bill is to add language to West Virginia Code §60A-10-7 requiring the issuance of a lawful prescription for dispensing drug products containing as an active ingredient ephedrine, pseudoephedrine, phenylpropanolamine and other chemical precursors of methamphetamine.
    
    According to our interpretation, this bill would require a prescription for dispensing certain medications containing as an active ingredient ephedrine, pseudoephedrine, phenylpropanolamine and other chemical precursors of methamphetamine that are currently available without a prescription (i.e., over the counter). As a result, these medications, which are currently taxable over the counter, would become exempt from the Consumers Sales and Use Tax as a prescription. The loss to the General Revenue Fund from the passage of this bill would be less than $500,000 per year.
    
    There would be no additional administrative costs to the State Tax Department from the passage of this bill.
    

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2011
Increase/Decrease
(use"-")
2012
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 0 0
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 -500,000 -500,000
3. Explanation of above estimates (including long-range effect):
    The stated purpose of this bill is to add language to West Virginia Code §60A-10-7 requiring the issuance of a lawful prescription for dispensing drug products containing as an active ingredient ephedrine, pseudoephedrine, phenylpropanolamine and other chemical precursors of methamphetamine.
    
    According to our interpretation, this bill would require a prescription for dispensing certain medications containing as an active ingredient ephedrine, pseudoephedrine, phenylpropanolamine and other chemical precursors of methamphetamine that are currently available without a prescription (i.e., over the counter). As a result, these medications, which are currently taxable over the counter, would become exempt from the Consumers Sales and Use Tax as a prescription. The loss to the General Revenue Fund from the passage of this bill would be less than $500,000 per year.
    
    There would be no additional administrative costs to the State Tax Department from the passage of this bill.
    


Memorandum
Person submitting Fiscal Note:
Mark Muchow
Email Address:
kerri.r.petry@wv.gov