This bill introduces a new section to the Tax Administration Act that establishes a gross receipts tax deduction for the sale of certain in-office equipment and medications dispensed by health care practitioners. Specifically, it allows health care practitioners to deduct receipts from the sale of in-office equipment and medications used in their practice, provided these items are utilized during services within their scope of practice. The bill also mandates that taxpayers report these deductions separately, and it requires the inclusion of these deductions in the tax expenditure budget.

Additionally, the bill provides for a hold harmless distribution to municipalities and counties to offset the impact of these gross receipts tax deductions. The distribution amounts will be calculated based on the total deductions claimed by taxpayers in each municipality and county, multiplied by the applicable local option gross receipts tax rates. The effective date for the provisions of this act is set for July 1, 2026.