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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
House Bill 2199
Sponsored by Representative SCHARF (Presession filed.)
SUMMARY
The following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject
to consideration by the Legislative Assembly. It is an editor’s brief statement of the essential features of the
measure as introduced.The statement includes a measure digest written in compliance with applicable readability
standards.
Digest: The Act makes all pharmacy drug sale receipts not taxed by the corporate activity tax.
(Flesch Readability Score:61.8).
Exempts receipts from the sale of prescription drugs by all licensed retail pharmacies from
commercial activity subject to the corporate activity tax. Applies to tax years beginning on or after
January 1, 2026.
Takes effect on the 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to exemption of prescription drug sales; creating new provisions; amending ORS 317A.123;
and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 317A.123 is amended to read:
317A.123. (1) As used in this section[:],
[(a) “Eligible pharmacy” means a pharmacy that has nine or fewer locations under common own-
ership in this state. “Eligible pharmacy” does not include a pharmacy that caters primarily to
veterinarycustomers.]
[(b)] “pharmacy” has the meaning given that term in ORS 689.005.
(2) Notwithstanding ORS 317A.100, amounts received by [an eligible] a pharmacy in receipt for
the sale of prescription drugs are excluded from the definition of commercial activity and are exempt
from the tax imposed under ORS 317A.116.
SECTION 2. The amendments to ORS 317A.123 by section 1 of this 2025 Act apply to tax
years beginning on or after January 1, 2026.
SECTION 3.This 2025 Act takes effect on the 91st day after the date on which the 2025
regular session of the Eighty-third Legislative Assembly adjourns sine die.
NOTE:Matter in boldfaced type in an amended section is new; matter [italic and bracketed] is existing law to be omitted.
New sections are in boldfaced type.
LC 1414