HB 1898 -- Taxation:  Tax on Retail Pharmacies

Co-Sponsors:  Campbell, Reinhart

This bill imposes a tax upon licensed retail pharmacies in
Missouri for the privilege of providing outpatient prescription
drugs.  The tax rate will be determined in accordance with rules
by the Department of Revenue based on monthly gross retail
prescription receipts of pharmacies.  The tax rate cannot exceed
6%.  The Department of Social Services will notify each
individual pharmacy of the amount of quarterly tax due.

The bill provides for a credit against the tax on pharmacies for
certain taxes paid to the federal government and provides for
offsets against any Medicaid payment due the pharmacy from the
state.

All revenues from the tax will be deposited in the Pharmacy Tax
Fund, created in the bill.  Moneys in the fund will be used to
provide payments for services related to the Medicaid pharmacy
program.

The provisions of the bill will expire on June 30, 2005.

The bill contains an emergency clause.

Missouri House of Representatives
Last Updated October 11, 2002 at 9:02 am