HLS 10RS-643 ORIGINAL
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2010
HOUSE BILL NO. 273
BY REPRESENTATIVE LEBAS
TAX/SALES-USE, LOCAL: Provides relative to the payment of local sales and use tax on
prescription drugs and pharmacist services
AN ACT1
To amend and reenact R.S. 47:337.11.1(A), relative to local sales and use taxes; to provide2
relative to the payment of sales taxes levied by political subdivisions on prescription3
drugs and pharmacist services under certain circumstances; to provide for an4
effective date; and to provide for related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 47:337.11.1(A) is hereby amended and reenacted to read as follows:7
ยง337.11.1. Local sales and use tax; prescription drugs and pharmacist services;8
requirements9
A. Upon the sale of prescription drugs and pharmacist services, a pharmacy10
or pharmacist shall be responsible for collecting any sales and use tax levied by a11
local political subdivision of this state and for remitting the amount of such tax to the12
levying authority. Upon receipt of payment from a health insurance issuer for13
pharmacist services which includes the payment of local sales and use taxes on14
prescription drugs or pharmacist services, the pharmacist or pharmacy shall remit15
such taxes to the levying authority. It shall be the responsibility of the health16
insurance issuer to reimburse the pharmacy or pharmacist the amount of such tax in17
certain cases in which health insurance coverage for prescription drugs and18
pharmacist services exists, depending on the terms and conditions of the insured's19
insurance issuer's agreement with its member or insured. All contracts executed by20 HLS 10RS-643 ORIGINAL
HB NO. 273
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
a health insurance issuer after January 1, 2009, which includes health insurance1
coverage for prescription drugs and pharmacist services shall clearly define the2
responsibility of the health insurance issuer or the health insurance issuer's member3
or insured for the payment of local taxes on the sale of prescription drugs and4
pharmacist services. Upon receipt of an electronic transaction from a pharmacy5
indicating the sale of a prescription drug or the rendering of the pharmacist services6
and specifying the amount of any sales and use tax, a health insurance issuer or its7
agent shall advise the pharmacy electronically of the applicable sales and use tax to8
be reimbursed to the pharmacy.9
* * *10
Section 2. This Act shall become effective upon signature by the governor or, if not11
signed by the governor, upon expiration of the time for bills to become law without signature12
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If13
vetoed by the governor and subsequently approved by the legislature, this Act shall become14
effective on the day following such approval.15
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
LeBas HB No. 273
Abstract: Requires the remittance of local sales and use taxes to the levying authority upon
receipt by a pharmacist of payment from a health insurance issuer which includes
payment of local sales and use taxes.
Present law requires a pharmacy or pharmacist to collect sales and use taxes upon the sale
of prescription drugs and pharmacist services levied by political subdivisions and to remit
such taxes to the levying authority. Further requires a health insurance issuer to reimburse
the pharmacy or pharmacist the amount of such tax in cases in which health insurance
coverage for prescription drugs and pharmacist services exists, depending on the terms and
conditions of the insurance agreement.
Present law requires all contracts executed by a health insurance issuer after Jan. 1, 2009,
which include health insurance coverage for prescription drugs and pharmacist services, to
clearly define the responsibility of the health insurance issuer or the health insurance issuer's
insured for the payment of local taxes on the sale of prescription drugs and pharmacist
services. Further requires a health insurance issuer to advise the pharmacy electronically of
the applicable sales and use tax to be reimbursed to the pharmacy. HLS 10RS-643 ORIGINAL
HB NO. 273
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Proposed law changes present law to require a pharmacist or pharmacy to remit local sales
and use taxes collected for pharmacist services upon receipt of payment from a health
insurance issuer which includes the payment of local sales and use taxes on prescription
drugs or pharmacist services rather than upon the sale of prescription drugs and pharmacist
services.
(Amends R.S. 47:337.11.1(A))