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Don't Be a Sick Dog in Alabama

  • Dec 21, 2012 | Gail Cole

Prescription drugs for human consumption are exempt from sales and use tax in the state of Alabama. However, a recent new release from the Alabama Department of Revenue reminds that prescriptions for animals are not tax exempt.

It doesn't matter where the drugs are purchased. Joe Walls, director of the ADOR Sales and Use Tax Division, notes that "[p]rescription items sold by licensed veterinarians, as well as prescription items sold by retail pharmacies, etc, for animal consumption are taxable."

Confusion has arisen because prescription drugs sold for human consumption are not subject to sales and use tax. In addition, medications are exempt "for livestock, poultry, or fish raised in commercial or farming enterprises."

Prescription drugs (for both humans and livestock) that are exempt from sales tax are listed in Code of Alabama 1975 Section 40-23-4.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.