Virginia OTC tax exemption
This article was originally published in The Tan Sheet
Executive Summary
Recently implemented program has eliminated the 4.5% state sales tax on almost all major OTCs. The list of affected products does not include dentifrices; dietary supplements also are excluded from the exemption. The change was first passed in 1990 but was not implemented until July 1. A surplus in Virginia revenue permitted the measure to take effect, which the state estimates will cost $34.5 mil. during the first two years. Similar OTC tax exemptions are in place in nine other states and the District of Columbia. Boehringer Ingelheim lobbied for a similar tax exemption on both Rx and OTC samples following a court case with the Virginia Department of Taxation over unpaid use tax...