SB2188 Summary

• Effective July 1, 2023, exempts prescription medicines and medical devices from Illinois sales and use taxes under the Use Tax Act, Service Use Tax Act, Service Occupation Tax Act, and Retailers' Occupation Tax Act.

• Medical device exemption includes Class III medical devices by the FDA used for cancer treatment pursuant to a prescription, plus accessories and components related to those devices.

• Exemption applies to both prescription and nonprescription medicines and drugs, with nonprescription medicines taxed at 1% (rather than the standard 6.25% rate) if not otherwise exempt under the new provision.

• Removes previous language taxing nonprescription medicines and drugs at reduced rates, consolidating all medication and medical device exemptions under a single provision effective July 1, 2023.