HB 88 Summary

• Adds Section 40-23-4.4 to Alabama Code to exempt over-the-counter medications from city, county, and state sales taxes.

• Defines "over-the-counter medications" as drugs with labels identifying them as drugs, including either a "Drug Facts" panel or a statement of active ingredients on the retail package.

• Excludes grooming and hygiene products and dietary supplements from the exemption.

• Authorizes the state to promulgate additional clarification rules under the Administrative Procedures Act to define over-the-counter medications.

• Becomes effective for tax years beginning on or after January 1, 2011.