LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: SB 125 SLS 21RS 115
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: June 9, 2021 12:03 PM Author: MORRIS, JAY
Dept./Agy.: Local
Subject: Local Tax Exemptions: Infusion Treatment Drugs Analyst: Benjamin Vincent
TAX/LOCAL EN DECREASE LF RV See Note Page 1 of 1
Exempts certain infused prescription drugs from local sales tax. (7/1/21)
Current law provides for optional exemptions from local sales and use taxes for certain prescription drugs, if the exemption
is adopted by a local ordinance or resolution.
Proposed law creates a mandatory local sales and use tax exemption for certain infused prescription drugs when used
exclusively for certain treatments at a physician’s office.
Effective July 1, 2021.
EXPENDITURES 2021-22 2022-23 2023-24 2024-25 2025-26 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0 $0 $0
REVENUES 2021-22 2022-23 2023-24 2024-25 2025-26 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds DECREASE DECREASE DECREASE DECREASE DECREASE
Annual Total
EXPENDITURE EXPLANATION
There is no anticipated direct material effect on governmental expenditures as a result of this measure.
REVENUE EXPLANATION
Proposed law exempts certain infused prescription drugs used to treat specific conditions by medical professionals in a
physician’s office where patients are not regularly kept for more than 24 hours. Proposed law specifies a list of 23 diseases
and conditions for which the exemption is eligible.
Proposed law can only work to reduce local sales tax revenues by some indeterminable amount from what they would
otherwise be. Information regarding the aggregate taxable value of these drugs/ procedures is not available. The revenue
impact for any particular political subdivision will vary depending on the tax rate applied to these transactions in each
subdivision, and the extent to which each subdivision currently exempts prescription drugs generally.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Gregory V. Albrecht
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} Chief Economist
or a Net Fee Decrease {S}


Statutes affected:
SB125 Enrolled: 47:10(A)(1)
SB125 Act 286: 47:10(A)(1)