Phases in an exemption from local sales tax on certain inhibitors and complex biologics if the Revenue Estimating Conference estimates a certain percentage increase in state general sales tax. (7/1/13) (OR -$5,000,000 LF RV See Note)
Impact
This legislation is anticipated to have significant implications for the state's financing at the local level. By exempting certain healthcare products from local sales tax, the financial burden on patients and healthcare providers may be lessened, potentially enhancing access to these critical therapies. However, this exemption could also result in a reduction of revenue for local governments that rely on sales tax income, prompting concerns about funding for essential services.
Summary
Senate Bill No. 82, introduced by Senator Mills, aims to phase in a conditional exemption from local sales tax for certain inhibitors and complex biologics. The bill states that if the Revenue Estimating Conference estimates a growth of at least two percent in state general sales tax, a partial exemption (50%) will begin on January 1 of the following fiscal year, increasing to a full exemption (100%) starting the next calendar year. The specific products covered under this exemption are vaso-endothelial growth factor inhibitors and monoclonal antibodies, which play important roles in therapeutic treatments.
Sentiment
The sentiment surrounding SB 82 seems to be mixed among legislators and stakeholders. Advocates for the bill point to the necessity of making important medical treatments more accessible and affordable for patients suffering from conditions treated by the specified inhibitors and biologics. Conversely, critics raise concerns about the potential loss of revenue for local entities and argue that while the intention may be good, the long-term economic ramifications could outweigh the immediate benefits.
Contention
Notable points of contention include the timing and conditions under which the sales tax exemption is activated, as it is tied to state revenue predictions that may fluctuate. Stakeholders are concerned about the potential implications on local government finances and the efficacy of estimating revenues accurately. Additionally, the differing perspectives between various healthcare advocates and local government officials highlight a broader debate about balancing economic health with community service funding.
Phases in an exemption from local sales tax on certain inhibitors and complex biologics if the Revenue Estimating Conference estimates a certain percentage increase in state general sales tax. (7/1/12) (RE -$5,000,000 LF RV See Note)
Provides for a state sales and use tax exemption for certain transactions related to certain inhibitors and certain complex biologics. (7/1/11) (OR -$4,800,000 LF RV See Note)
Provides for the rate of the state sales and use tax and for exemptions, exclusions, credits, and rebates claimed against sales and use taxes; and provides for a flat rate of income tax for individuals, estates, and trusts, increases the standard deduction, and modifies or repeals certain income tax deductions and credits (Items #5, 6, and 8) (EN SEE FISC NOTE RV See Note)
Provides for the dedications and uses on the deposit of certain monies derived from certain general fund revenues attributable to an increase in the base amount of mineral revenues received by the state as certified by the Revenue Estimating Conference for various Transportation Trust Fund and other transportation uses. (See Act) (EN -$4,400,000 GF RV See Note)
Requires the Revenue Estimating Conference to designate certain general fund money from mineral revenue as restricted and prohibits including such revenue in the executive budget (RE SEE FISC NOTE GF RV See Note)