Whereas, under current law, sales of prescription medicines for humans are exempt from the state sales tax; and

Whereas, based on that exemption, veterinarians and other sellers of prescription medicines historically have not collected sales tax for prescription medicines for animals; and

Whereas, it has only recently been clarified that sales tax must be collected for sales of prescription drugs for animals; and

Whereas, it would be unjust to require the payment of sales tax not collected for sales of prescription drugs for animals due to the difficulty in attempting to collect it retrospectively; and

Whereas, in the judgment of the Legislature, these facts create an emergency within the meaning of the Constitution of Maine and require the following legislation as immediately necessary for the preservation of the public peace, health and safety; now, therefore,

Be it enacted by the People of the State of Maine as follows:

Sec. 1. Sales tax exemption for prescription drugs for animals until July 1, 2005. Notwithstanding the Maine Revised Statutes, Title 36, section 1811, sales of medicines for animals sold on a doctor's prescription occurring before July 1, 2005 are exempt from the sales and use tax imposed pursuant to Title 36, Part 3.

Sec. 2. Retroactivity; application. This Act applies to all sales of medicines for animals sold on a doctor's prescription occurring before July 1, 2005. Notwithstanding section 1, a person who has paid sales tax on sales of medicines for animals is not entitled to a refund of the sales tax paid. A person who has collected sales tax on the sales of medicine for animals shall remit that tax as required by the Maine Revised Statutes, Title 36, chapter 219.

Emergency clause. In view of the emergency cited in the preamble, this Act takes effect when approved.

SUMMARY

This bill provides until July 1, 2005 a sales tax exemption