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


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


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