Bill > SB6228

This bill removes a tax exemption for businesses that warehouse and resell prescription drugs, meaning these activities will now be taxed. Specifically, for the calendar year 2027, a tax rate of 0.5 percent will apply to the gross income from warehousing and reselling drugs for human use pursuant to a prescription, and starting January 1, 2028, this rate will decrease to 0.35 percent. The bill also introduces tax relief for "critical access pharmacies," which are defined as independent pharmacies that meet certain criteria, such as being located more than 25 miles from another pharmacy, being the only pharmacy on an island, being operated by a tribe, being the sole pharmacy in a high poverty census tract, or being on a specific list maintained by the health care authority. These critical access pharmacies will have a reduced tax rate of 0.138 percent on their retail sales. The bill also repeals an existing law related to the tax on warehousing and reselling prescription drugs and specifies an effective date of January 1, 2027.