While Gov. Jindal has had great success in advancing his reform agenda and Louisiana is no longer synonymous with political corruption, there is still one dubious distinction that makes the Pelican State a fiscal outlier. As it stands, Louisiana is one of only three states in the country that allows sales tax to be levied on medications. In Louisiana's case, the state itself does not levy the state sales tax, but Parishes are permitted to assess local sales tax on prescriptions.
Fortunately, legislation has been introduced to bring the tax code up to date by eliminating this disadvantage. The proposed committee substitutes for SB 143 and HB 648 by Sen. Fred Mills and Rep. Patrick Williams would eliminate this tax on medication that is unique to Louisiana.
ATR agrees with Sen. Mills and Rep. Williams that it is time to eliminate the excessive and discriminatory tax on medication in Louisiana, which places physicians, pharmacists, and hospitals at a competitive disadvantage and threatens patient care.
Click here to see ATR's letter to Chairman Robideaux and members of the House Committee on Ways and Means in support of the substitute to HB 648.