Download This Version in Microsoft Word format
Indicates Matter Stricken
Indicates New Matter
RECALLED
May 26, 1999
S. 575
S. Printed 5/26/99--S.
Read the first time March 9, 1999.
REVENUE IMPACT1
This bill is expected to reduce sales and use tax revenue an estimated $7,750 in FY1999-00. Of this amount, general fund sales and use tax revenue would be reduced by an estimated $6,200, and EIA funds would be reduced by $1,550 in FY1999-00.
Explanation
This bill would create a sales and use tax exemption for disposable medical supplies such as bags, tubing, needles, and syringes used in home health care practices dispensed by licensed health care professionals. According to data from the Health Care Financing Administration, $15.5 million was spent on home health care therapy in South Carolina during federal fiscal year 1998 to assist over 10,330 individuals. Based upon conversations with health care representatives with the Health Section of the S.C. Division of Research and Statistical Services, the University of South Carolina School of Pharmacy, and the Social Security Administration, an estimated one percent of total home health care expenditures would be accounted by spending on bags, tubing, needles and syringes administered by qualified health care professionals. Multiplying $15.5 million by one percent and applying a five percent sales tax rate yields a reduction in sales and use tax revenue of an estimated $7,750 in FY1999-00. Of this amount, general fund sales and use tax revenue would be reduced by an estimated $6,200, and EIA funds would be reduced by $1,550 in FY1999-00.
Approved By:
William C. Gillespie
Board of Economic Advisors
1/ This statement meets the requirement of Section 2-7-71 for a state revenue impact, Section 2-7-76 for a local revenue impact, and Section 6-1-85(B) for an estimate of the shift in local property tax incidence.
TO AMEND SECTION 12-36-2120, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO EXEMPTIONS FORM THE SOUTH CAROLINA SALES TAX, SO AS TO PROVIDE FOR THE EXEMPTION OF SPECIFIED MEDICAL AND PHARMACEUTICAL SUPPLIES USED FOR THE INTRAVENOUS ADMINISTRATION OF A PRESCRIPTION DRUG OR MEDICINE IN CERTAIN SITUATIONS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-36-2120(28) of the 1976 Code, as last amended by Act 419 of 1998, is further amended to read:
"(28)(a) medicine and prosthetic devices sold by prescription, and free samples of prescription medicine distributed by its manufacturer and any use of these free samples;
(b) hypodermic needles, insulin, alcohol swabs, blood sugar testing strips, monolet lancets, dextrometer supplies, blood glucose meters, and other similar diabetic supplies sold to diabetics under the authorization and direction of a physician;
(c) disposable medical supplies such as bags, tubing, needles, and syringes, which are dispensed by a licensed pharmacist in accordance with an individual prescription written for the use of a human being by a licensed health care provider, which are used for the intravenous administration of a prescription drug or medicine, and which come into direct contact with the prescription drug or medicine. This exemption applies only to supplies used in the treatment of a patient outside of a hospital, skilled nursing facility, or ambulatory surgical treatment center;
(c)(d) medicine donated by its manufacturer to a public institution of higher education for research or for the treatment of indigent patients; and
(d)(e) dental prosthetic devices;"
SECTION 2. This act takes effect upon approval by the Governor.
This web page was last updated on
Friday, June 26, 2009 at 3:09 P.M.