Bill > SB0907

This bill amends Tennessee's tax code to create a new exemption for certain high-cost prescription drugs and related services from business taxation. Specifically, the bill exempts prescription drugs or medicines with a 30-day supply cost that exceeds the Medicare Part D specialty tier cost threshold for 2025, as determined by the Centers for Medicare and Medicaid Services (CMS). Additionally, the bill exempts services directly related to these high-cost drugs, including preparation, storage, handling, administration, patient education, and post-sale monitoring. The exemption applies to the business tax imposed by the state, effectively reducing the tax burden on businesses selling these expensive medications. The new tax exemption will take effect on July 1, 2025, giving businesses and tax authorities time to prepare for the change. By targeting drugs that exceed a specific cost threshold, the bill appears to focus on protecting businesses dealing with particularly expensive specialty medications from additional tax burdens.

Budget and Finance

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=SB0907&ga=114