House Bill 767 amends Tennessee's taxation laws concerning prescription drugs and patent medicines. Specifically, it deletes the existing provision in Tennessee Code Annotated, Section 67-4-708(2)(D), and replaces it with a new definition that clarifies which prescription drugs and patent medicines are exempt from taxation. The bill also introduces a new subsection in Section 67-4-712, which states that the tax does not apply to receipts from the sale of prescription drugs or medicines that exceed the Medicare Part D specialty tier cost threshold for the 2025 plan year, as determined by federal regulations. Additionally, it exempts services related to the preparation, storage, handling, administration, patient education, or post-sale monitoring of these exempt drugs or medicines.

The bill is set to take effect on July 1, 2025, ensuring that the new tax exemptions will be in place for the specified prescription drugs and related services starting from that date. This legislation aims to alleviate the financial burden on consumers purchasing high-cost prescription medications and to clarify the tax obligations for related services.

Statutes affected:
Introduced: 67-4-708(2)(D), 67-4-708, 67-4-712