SLS 21RS-115 ORIGINAL
2021 Regular Session
SENATE BILL NO. 125
BY SENATOR MORRIS
TAX/LOCAL. Exempts certain infused prescription drugs from local sales tax. (7/1/21)
1 AN ACT
2 To enact R.S. 47:305.75 and 337.9(C)(27), relative to local sales and use tax; to provide an
3 exemption from local sales and use tax for the purchase of certain infused
4 prescription drugs; to provide for the applicable diseases and conditions; to provide
5 for limitations; to provide for effectiveness; and to provide for related matters.
6 Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 47:305.75 and 337.9(C)(27) are hereby enacted to read as follows:
8 §305.75. Exemption; infused prescription drugs for treating certain diseases
9 and conditions
10 A. The tax imposed by the political subdivisions of the state shall not
11 apply to the procurement and administration of prescription drugs used
12 exclusively by the patient in his medical treatment when administered
13 exclusively to the patient by a physician, nurse, or other health care professional
14 by infusion in a physician's office where patients are not regularly kept as bed
15 patients for twenty-four hours or more.
16 B. The exemption provided for in Subsection A of this Section shall apply
17 only to prescription drugs that are prescribed for the treatment of the following
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 125
SLS 21RS-115 ORIGINAL
1 diseases and conditions:
2 (1) Rheumatoid arthritis.
3 (2) Psoriatic arthritis.
4 (3) Lupus.
5 (4) Chronic gout.
6 (5) Osteoporosis.
7 (6) Multiple sclerosis.
8 (7) Myasthenia gravis.
9 (8) Amyotrophic lateral sclerosis.
10 (9) Chronic inflammatory demyelinating polyneuropathy.
11 (10) Ulcerative colitis.
12 (11) Chron's disease.
13 (12) Anemia.
14 (13) Chronic or severe asthma.
15 (14) Common variable immune deficiency.
16 (15) Primary immune disorder.
17 (16) Human immunodeficiency virus.
18 (17) COVID-19.
19 * * *
20 §337.9. Exemptions applicable to local tax in Chapters 2, 2-A, and 2-B; other
21 exemptions applicable
22 * * *
23 C. * * *
24 (27) R.S. 47:305.75, "key words": infused prescription drugs for treating
25 certain diseases and conditions.
26 * * *
27 Section 2. This Act shall become effective on July 1, 2021; if vetoed by the governor
28 and subsequently approved by the legislature, this Act shall become effective on July 1,
29 2021, or on the day following such approval by the legislature, whichever is later.
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 125
SLS 21RS-115 ORIGINAL
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Leonore Heavey.
DIGEST
SB 125 Original 2021 Regular Session Morris
Present law provides for a mandatory exemption for prescription drugs from state sales and
use tax, a mandatory exemption from state and local sales and use tax for certain
chemotherapy prescription drugs, and authorizes an optional exemption for other
prescription drugs from local sales and use tax if a local taxing authority adopts the
exemption by ordinance or resolution.
Proposed law creates a mandatory local sales and use tax exemption for infused prescription
drugs that are administered by a medical professional in a physician's office where patients
are not regularly kept as bed patients for 24 hours or more.
Proposed law provides that the exemption applies only to drugs prescribed for the diseases
and conditions listed.
Effective July 1, 2021.
(Adds R.S. 47:305.75 and 337.9(C)(27))
Page 3 of 3
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.