Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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425.0000 PRESCRIPTION MEDICINES—Regulation 1591

Annotation 425.0023


425.0023 Confidentiality—Prescription Records. The prescription medicine exemption contained in section 6369 of the Sales and Use Tax Law for sales by pharmacies is conditioned on certain requirements, which are that the prescribed item be a medicine prescribed for the treatment of a human being by a person authorized to prescribe the medicine and dispensed by a registered pharmacist in accordance with law. section 6091 establishes a presumption that all gross receipts are subject to tax until the contrary is established. Under this section, it is up to the pharmacist to establish that the sales for which he claims exemption have met all of the requirements. A pharmacist who withholds information contained on prescriptions he has filled has not established his right to the exemption and the Board may estimate the value of the merchandise sold from whatever information it may have in its possession or which may come into its possession, including the "street value" of drugs not accounted for by the sales records. The authority of the Board or its representatives to inspect the records of a pharmacy is not limited by the sections of the Business and Professions Code dealing with the inspection rights of other state agencies. 12/20/85.