HB 767

Present law requires b usinesses, vocations and occupations that are taxable to be designate d into certain classifications for business tax rates. E ach person must be classified according to the dominant business activity . Classification two includes p rescription drugs and patent medicines . This bill exempts certain p rescription drugs and pate nt medicines , as described below, from being included in classification two. Classification tw o taxpayers pay 3/20 of 1% of all sales by a retailer an d 3/80 of 1% of all sales by a wholesaler . EXEMPTIONS Present law provides certain exemptions from bus iness taxes. This bill exempts certain prescription drug s or medicine s with a cost for a 30 -day equivalent supply that exceeds the medicare part D specialty tier cost threshold for 2025 plan years, as determined by the federal centers for medicare and med icaid services . For the 2025 plan year, the medicare part D specialty tier cost threshold is set at $590. This bill exempts from business taxes prescription drugs and patent medicines that cost more than this threshold for a 30-day supply. This bill als o exempts s ervices necessary for proper preparation, storage, handling, administration, patient education, or post-sale monitoring of such exempt drugs and medicines .