HF1479

This bill amends Minnesota Statutes 2024, section 295.54, subdivision 2, changing the refund process for pharmacies regarding provider taxes on certain prescription drug sales. The primary change is shifting the refund from an annual basis to a quarterly basis.

Key provisions of the bill: - Pharmacies may now claim quarterly refunds for provider taxes paid on legend (prescription) drugs delivered outside of Minnesota. - The refund amount is calculated based on the amount paid by the pharmacy to a wholesale drug distributor taxed under section 295.52, subdivision 3, multiplied by the applicable tax rate. - If the refund amount exceeds the pharmacy's tax liability, the excess will be refunded. - Pharmacies must file refund claims according to the following schedule: 1. For drugs delivered between January 1 – March 31: Refund requests may be filed on or after July 1. 2. For drugs delivered between April 1 – June 30: Refund requests may be filed on or after July 1. 3. For drugs delivered between July 1 – September 30: Refund requests may be filed on or after October 1. 4. For drugs delivered between October 1 – December 31: Refund requests may be filed on or after January 1 of the following year. - The initial claim for a refund must be filed within one year from the end of the quarter in which the drugs were delivered out of state. - Interest on refunds begins to accrue 60 days after a claim is filed, with the filing date considered either the return's due date or the actual refund claim submission date, whichever is later.

Overall, the bill accelerates the refund process, ensuring that pharmacies receive provider tax refunds on a quarterly rather than annual basis.