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SF2815 (Legislative Session 94 (2025-2026))

Quarterly pharmacy tax refunds establishment

Related bill: HF1479

AI Generated Summary

Purpose of the Bill

The bill aims to modify the manner in which pharmacies in Minnesota can receive tax refunds for certain transactions. Specifically, it changes the period and process by which pharmacies can claim refunds on taxes paid for drugs distributed outside the state.

Main Provisions

  • Quarterly Refunds: Pharmacies can now claim refunds on a quarterly basis rather than annually. This allows for more frequent adjustments and refunds on taxes paid.
  • Refund Claim Process: Pharmacies need to file refund requests based on the delivery dates of legend drugs (prescription drugs) outside Minnesota, following a specific schedule:
    1. For drugs delivered between January 1 and March 31, claims can be filed after July 1 of the same year.
    2. For drugs delivered between April 1 and June 30, claims can be filed after July 1 of the same year.
    3. For drugs delivered between July 1 and September 30, claims can be filed after October 1 of the same year.
    4. For drugs delivered between October 1 and December 31, claims can be filed after January 1 of the following year.

Significant Changes to Existing Law

  • Previously, pharmacies could claim these refunds on an annual basis. The bill changes this to a quarterly basis, potentially easing the cash flow for pharmacies.
  • The bill introduces deadlines for each quarter's refund application and specifies conditions under which interest on these refunds begins to accrue.
  • There is now a clear expiration for filing refund claims, set at one year after the end of the quarter in which the drugs were delivered outside of Minnesota, ensuring timeliness in claims.

Relevant Terms

  • Pharmacy refund
  • Legend drugs
  • Wholesale drug distributor
  • Tax liability
  • Minnesota tax law

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 19, 2025SenateFloorActionIntroduction and first reading
March 19, 2025SenateFloorActionReferred toHealth and Human Services
April 06, 2025SenateFloorActionComm report: To pass and re-referred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "A new subsection for quarterly filing dates for pharmacy refunds."
      ],
      "removed": [
        "Eliminates the annual refund filing option for pharmacies."
      ],
      "summary": "This bill modifies the pharmacy refund process under section 295.54.",
      "modified": [
        "Changes the interest accrual start from annual filing to quarterly filing of refunds."
      ]
    },
    "citation": "295.54"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill references tax obligations and percentages under section 295.52.",
      "modified": [
        "Adjusts references to the tax percentage used for pharmacy refunds."
      ]
    },
    "citation": "295.52"
  }
]

Sponsors