This bill amends the existing sales and use tax exemption for prescription drugs and oxygen to include over-the-counter drugs that are prescribed by licensed healthcare professionals. The new language specifies that the exemption applies to gross receipts from the sale, purchase, or use of both prescription drugs and prescribed over-the-counter drugs when administered for human use. Additionally, the bill clarifies the definition of "healthcare professional" to encompass a broader range of medical practitioners, including physicians, dentists, podiatrists, physician assistants, nurse practitioners, advanced practice registered nurses, and pharmacists, all of whom have prescriptive authority.

Furthermore, the bill introduces definitions for "over-the-counter drug," which must include specific labeling requirements, and establishes that the Secretary of the Department of Finance and Administration will create rules to ensure the effective administration of these exemptions. The effective date for these changes is set for the first day of the calendar quarter following the act's approval.