Senate votes to allow refunds for any unused credit from recalled pharmacy provider tax increase after Oct. 1, 2018

Limited refunds of a 15-cent increase in a provider tax that pharmacies paid between Sept. 1, 2015, and June 17, 2016, would be possible under SB416 by Sen. Paul Bussman, R-Cullman. The Alabama Senate approved the bill on a unanimous vote Thursday, May 11. It awaits consideration by the House Ways and Means General Fund Committee.

Since Oct. 1, 2016, the state has been allowing monthly credits, rather than refunds, for the overpaid tax. Under Bussman’s bill, a pharmacy entitled to a credit that has any unused credit remaining after Oct. 1, 2018, could petition the Alabama Department of Revenue for a refund. Sen. Billy Beasley, D-Clayton, who is a pharmacist, praised the legislation saying some pharmacies have been unable to claim credits the way the law reads currently.

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