07/14/2003

SOCIETY EFFORT PROVIDES SALES TAX EXEMPTION FOR DRUGS IN OHIO

After a lengthy battle over several years, the Society was able to finally correct an inequity in Ohio tax law and the application of the state sales tax on drugs administered in the physician office. The tax was applied to any drug a physician purchased and administered to a patient in the office. Althougth applicable to all providers, the burden of the tax was particularly hard on oncologists because of the amount and cost of drugs administered in the office. That burden would have been worse with the increase of the state sales tax on July 1.

Ohio was one of only three states to apply the sales tax in this manner. The other two states include West Virginia and Illinois. Earlier in the year, Kentucky passed a law exempting drugs administered in the office from the state sales tax.

Through the efforts of the Society, we were able to get the exemption into a budget bill that was dealing with a $750 million deficit. That speaks volumes to the strength of our arguments, the support of legislators and the hard work of the Society. The change will put Ohio physicians on level reimbursement with their colleagues around the country.

Governor Taft signed the budget bill (HB 95) on June 26 and the sales tax provision became effective July 1, 2003.