Answer

With limited exceptions, the general constitutional and statutory exemptions for sales and use taxes on prescription drugs apply only to the State portion of the sales tax. Article VII, §2.2 of the Louisiana Constitution, and R.S. 47:305(D)(1)(j). However, various statutory provisions, including R.S. 47:305(D)(4)(b), cancer drugs administered in medical facility or doctor’s office, and R.S. 47:305(D)(5), prescription drugs purchased under Medicare or Medicaid, specifically exempt both State and local sales and use taxes in certain instances. There are also various statutory provisions which authorize local taxing authorities to exempt collection of local sales and use taxes on various prescription drugs through ordinance/resolution. Louisiana Legislative Auditor website: 04/29/2025 11:15:28 PM