South Carolina – Exemption for Injectable Medications and Biologics

SALT Report 1587 – The South Carolina General Assembly recently passed legislation that amends a previous sales and use tax law regarding exemptions for injectable medications and injectable biologics.  As amended, Section 12-36-2120 now provides that all injectable medications and injectable biologics are exempt from sales tax when they are administered by or under the supervision of a physician, or administered in a Medicare or Medicaid Certified Kidney Dialysis facility.

HB 3747 defines biologics’ as a product that is applicable to the “prevention, treatment, or cure of a disease or condition of human beings and that is produced using living organisms, materials derived from living organisms, or cellular, subcellular, or molecular components of living organisms.”
The exemption will take effect when the following economic conditions have been met:
  • If the growth forecast for the annual general fund revenue for the upcoming fiscal year is at least 2% of the most recent estimate by the board of general fund revenues for the current fiscal year then on July 1st the exemption will apply to 50% of the gross proceeds
  • The following July 1st the exemption will apply to 100% of the gross proceeds of sales
For Further Information:

South Carolina General Assembly – HB 3747