Alabama – Exemption for Diabetic Supplies

SALT Report 1520 – The Alabama State Legislature recently passed legislation that provides a sales tax exemption for items used to treat diabetes.  Under current law, the sale of prescription drugs is exempt from sales tax.  However, HB307 specifically states that any items used for the treatment of diabetes that are purchased by, or on behalf of, an individual with a valid prescription are exempt from all state, county, and municipal sales and use taxes.

The exemption includes, but is not limited to, the following items:

  • Insulin,
  • Insulin syringes,
  • Equipment,
  • Supplies,
  • Devices,
  • Chemical reagents, and
  • Any items that may be used by a diabetic to treat diabetes or to test or monitor blood or urine

This exemption will apply retroactively to all open tax periods.  However, refunds will not be given for purchases made before the effective date of August 1, 2012.

For Further Information:

Alabama State Legislature – HB 307