Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2014
Sales and Use Tax Annotations
425.0000 PRESCRIPTION MEDICINES—Regulation 1591
425.0160 Medicines Dispensed by Out-of-State Pharmacists. A substance or preparation otherwise qualifying as a medicine may qualify as an exempt prescription medicine under section 6369 as long as it is prescribed by a person authorized to prescribe the medicine, a licensed physician, dentist or podiatrist, and it is dispensed by a registered pharmacist in accordance with the law of the state where the pharmacist operates. An example would be a taxpayer, a Washington corporation, selling a prescription drug or medicine to patients in California from its place of business located in the State of Washington. The medicine is prescribed by ophthalmologists or physicians in California to patients. The patient mails an order form with payment to the taxpayer. The order form is processed at the taxpayer's place of business in Washington and the medicine is sent to the patient by United Parcel Service. The processing activity is under the supervision of pharmacists employed by the taxpayer, who are duly licensed by the Washington State Board of Pharmacy to engage in the practice of pharmacy. 5/30/90.