| Date Requested:January 12, 2012 Time Requested:02:02 PM |
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| FUND(S) General Revenue | |||
|---|---|---|---|
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 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. It should also be noted that Medicaid currently covers these types of medications (e.g., ephedrine and pseudoephedrine) pursuant to a prescription. As a result, these prescriptions would already be exempt from the Consumers Sales Tax. There would be no additional administrative costs to the State Tax Department from the passage of this bill. |
| Over-all effect |
| Effect of Proposal | Fiscal Year | ||
|---|---|---|---|
| 2012 Increase/Decrease (use"-") |
2013 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 | 0 | 0 |
|
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. It should also be noted that Medicaid currently covers these types of medications (e.g., ephedrine and pseudoephedrine) pursuant to a prescription. As a result, these prescriptions would already be exempt from the Consumers Sales Tax. There would be no additional administrative costs to the State Tax Department from the passage of this bill. |