House Bill 767 amends Tennessee tax law regarding the taxation of 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.

Additionally, the bill introduces a new subsection in Tennessee Code Annotated, Section 67-4-712, which states that the tax does not apply to receipts from the sale of prescription drugs or medicines that exceed a specified cost threshold set by Medicare for the 2025 plan year. It also exempts services related to the preparation, storage, handling, administration, patient education, or post-sale monitoring of these exempt drugs or medicines. The act is set to take effect on July 1, 2025.

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