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 425.0713


425.0713 Pill Containers. Pill containers are sold by the hospital when prescription medicine is placed therein when filling an out-patient prescription. However, when prescription medicine is placed in a container for an in-patient, the medical staff retains complete control and the container is being used in hospital operations. When the medicine is sold to the in-patient, it is sold by the dose. Accordingly, the sale takes place at the time of administration and the container is used by the hospital.

Although in some cases the remainder of the prescription may be delivered to the patient upon release from the hospital, the container has been "used" by the hospital and a tax paid purchases resold deduction is not available. 11/24/76.