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SB 1032

Relating to: a sales and use tax exemption for the sale of over-the-counter drugs. (FE)

2025-2026 Regular Session Introduced by Tim Carpenter and 5 co-sponsors

The bill would exempt sales of over-the-counter drugs from Wisconsin state and local sales and use tax, reducing consumer costs.

Failed to pass pursuant to Senate Joint Resolution 1
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WeVote Research Nonpartisan
Bill Summary · SB 1032

Summary: Wisconsin Senate Bill 1032 (2025) – Sales and Use Tax Exemption for Over-the-Counter Drugs

1. Purpose and Intent

  • SB 1032 seeks to establish a sales and use tax exemption for the sale of over-the-counter (OTC) drugs.
  • The bill aims to reduce the cost of common nonprescription medications for Wisconsin consumers by removing state and local sales tax from these purchases.

2. Key Provisions and Changes

  • Tax Exemption: Purchases of over-the-counter drugs would be exempt from Wisconsin sales and use tax. OTC drugs are typically non-prescription medicines such as analgesics, cough/cold remedies, antacids, allergy medicines, and other self-care products that do not require a prescription.
  • Scope of Exemption: The exemption applies to retail sales of OTC drug products intended for personal use by consumers. It is not specified here whether certain items (e.g., medical devices, vitamins, supplements, or personal care products) are included or excluded beyond OTC drugs; the text provided focuses on OTC drug products.
  • Effective Date: The bill as introduced does not specify an effective date in the materials provided. If enacted, the bill would include a enacted date or phase-in period as determined by the Legislature.
  • Administrative/Enforcement: Implications would include modifications to tax collection and reporting by retailers to reflect the exemption. Details on administrative rules, documentation, or compliance clarifications are not included in the provided materials.

3. Affected Parties

  • Consumers: Wisconsin residents purchasing OTC drugs in retail establishments would pay no state or local sales tax on those items, potentially reducing out-of-pocket costs.
  • Retailers: Stores selling OTC drugs would no longer collect sales tax on qualifying OTC drug transactions, affecting tax collection processes and potential administrative costs to ensure compliance.
  • State and Local Revenues: Eliminating the tax on OTC drugs could reduce state and local tax revenues unless offset by other revenue changes or administrative efficiencies.

4. Procedural and Timeline Aspects

  • Introduction and Sponsorship:
    • Introduced February 17, 2026.
    • Co-sponsors include Senators Mark Spreitzer, Dianne Hesselbein, Tim Carpenter, Melissa Ratcliff, Jeff Smith, Bob Wirch.
    • Cosponsors in the House include Representatives Sheehan, Sinicki, Snodgrass, Joers, Hysell, Miresse, Stubbs, Palmeri, Johnson, Roe, and Neubauer.
  • Committees:
    • Referred to the Senate Committee on Agriculture and Revenue (initial stage).
  • Actions Logged:
    • The bill has an action history indicating initial referral and subsequent sponsorship updates. A “Failed to pass pursuant to Senate Joint Resolution 1” entry appears in the action history for 2026-03-23, suggesting a procedural path or a potential scheduling outcome rather than a final enactment decision.
  • Fiscal Information:
    • A fiscal estimate was received on March 4, 2026, indicating that the bill’s impact on state and local revenues would be assessed.

Note: The provided material does not include the full bill text, explicit definitions of “over-the-counter drugs” as used in the bill, or any stated sunset/expiration provisions. If available, those details would clarify scope, transitional rules, and any potential fiscal offsets.

5. Practical Considerations

  • The exemption would likely lead to reduced tax collections from OTC drug sales unless offset by other tax changes or growth in overall consumption triggered by lower prices.
  • Retailers would require guidance on eligibility criteria (e.g., confirmation that a product is an OTC drug) and how to document exemptions in point-of-sale systems.
  • Public health implications are generally favorable for consumer access to affordable OTC medications, though the bill’s impact would depend on the breadth of products covered.

If you’d like, I can request or analyze the full bill text, fiscal note, and committee amendment history to refine the summary with precise definitions, exemptions, effective dates, and any sunset provisions.

Compiled from official sources — confirm details with the bill’s official record.

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