Arkansas Code § 26-52-406 - Prescription Drugs and Oxygen

(a) (1) The gross receipts or gross proceeds derived from the sale, purchase, or use of prescription drugs by licensed pharmacists, hospitals, or physicians when sold, purchased, or administered for human use and from the sale of oxygen sold for human use on prescription of a licensed physician shall be exempt from the Arkansas gross receipts tax levied by this chapter and the Arkansas compensating use tax levied by the Arkansas Compensating Tax Act of 1949, ยง 26-53-101 et seq.

(2) The withdrawal of prescription drug samples for free distribution from a stock or inventory, whether located within or outside the State of Arkansas, is exempt from the tax imposed by this chapter.

(b) The Director of the Department of Finance and Administration shall adopt such appropriate rules and regulations as the director deems necessary to assume the effective and efficient administration of the exemption provided for in this section and to prevent abuse thereof.

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Last modified: November 15, 2016