HCS HB 1898 -- TAX ON RETAIL PHARMACIES (Campbell)

This substitute 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
of 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 substitute 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 substitute.  Moneys in the fund will be used
to provide payments for services related to the Medicaid pharmacy
program.

The provisions of the substitute will expire on June 30, 2003.

The substitute contains an emergency clause.

FISCAL NOTE:  Estimated Net Income to General Revenue Fund of
$31,194,145 in FY 2003, $0 in FY 2004, and $0 in FY 2005.
Estimated Net Cost to Conservation Fund of Unknown in FY 2003, $0
in FY 2004, and $0 in FY 2005.  Totals are expected to exceed
$100,000 annually.  Estimated Net Cost to Highway Fund of
$720,456 in FY 2003, $0 in FY 2004, and $0 in FY 2005.  Estimated
Net Effect on Pharmacy Tax Fund of $0 in FY 2003, FY 2004, and FY
2005.  Revenues and expenditures of up to an estimated
$177,600,000 would net to $0.

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