MONTGOMERY, Ala. (WIAT) — A bill making its way through the legislature is causing concern in some cities across Central Alabama. It would impact pharmacies and how much they’d pay for a business license. Some say it could hurt many cities financially.
Right now, there is no sales tax on prescriptions. Senate Bill 31 would take that one step further and exclude prescriptions from business license taxes. A business owner’s license is calculated based on their sales. So, say prescriptions make up 90 percent of sales, that ninety percent would be taken out of what the business owner owes for their license.
In Vestavia Hills, city leaders say this would cost the city $60,000 annually. Mayor Ashley Curry said, “we have additional concerns that if this bill clears the legislature, what other business interests would come forward and try to have their product exempt from business licenses.”
The bill’s already made its way through the Senate. So now many city leaders are asking their representative to stop it in the house.