HR1431 96TH GENERAL ASSEMBLY

HR1431 LRB096 23800 HLH 43183 r

HOUSE RESOLUTION

WHEREAS, State-operated programs including the State Employees Group Insurance Program and the Comprehensive Health Insurance Plan include an option for individuals to receive qualifying prescriptions by mail order; and

WHEREAS, Employer-sponsored prescription drug coverage and privately purchased prescription drug coverage also typically include an option to purchase certain prescriptions by mail order; and

WHEREAS, Illinois-based pharmacies that fill prescriptions are required to pay applicable taxes, including sales taxes, to the State for those prescriptions; and

WHEREAS, Some mail order pharmacies that fill prescriptions for Illinois residents may be located outside of the geographic boundaries of the State; and

WHEREAS, Existing case law has placed limits on the imposition of State sales taxes on businesses that do not have a physical business location within the State; and

WHEREAS, Concerns have been raised that, when State employees, enrollees in State-subsidized programs, and privately covered individuals use a mail order pharmacy outside of the geographic boundaries of Illinois, significant revenues are lost due to the inability to collect taxes from the out-of-state pharmacies; and

WHEREAS, The mission statement of the Department of Revenue includes the responsibility of serving as the tax collection agency for the State and units of local government; therefore, be it

RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE NINETY-SIXTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that we request the Illinois Department of Revenue to conduct a study to determine the amount of additional revenue that would be collected each year if all prescriptions for individuals physically located in the State of Illinois were filled by pharmacies located within the geographic boundaries of Illinois; and be it further

RESOLVED, that information compiled pursuant to this study be developed into a report to the Governor and the General Assembly in a timely manner; and be it further

RESOLVED, That a suitable copy of this resolution be delivered to the Director of Revenue.