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AB 1100

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

2025-2026 Regular Session Introduced by Ben DeSmidt and 12 co-sponsors

The bill would exempt sales and use tax on eligible over-the-counter drugs at the point of sale.

Fiscal estimate received
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Bill Summary · AB 1100

Summary of Wisconsin Assembly Bill AB 1100 (2025 Session)

Title

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

Purpose and Intent

AB 1100 proposes a sales and use tax exemption for transactions involving the sale of over-the-counter (OTC) drugs. The bill seeks to remove state and/or local tax liability on purchases of OTC medications, making them more affordable for consumers.

Key Provisions and Changes

  • Tax Exemption Scope: Establishes a sales and use tax exemption specifically for the sale of over-the-counter drugs. The bill’s text would designate which OTC products are eligible (e.g., non-prescription medications typically sold in pharmacies, grocery stores, and big-box retailers).
  • Tax Type Affected: Sales and use tax on eligible OTC drug purchases.
  • Effective Date (if provided in the text): The legislative history indicates referral and potential timelines, but a precise effective date would be stated in the bill’s text. The fiscal note indicates consideration by the Ways and Means committee and a fiscal estimate was received on 2026-03-25, suggesting near-term implementation if enacted.
  • Administrative Details: The bill would require administrative alignment to apply the exemption at the point of sale and ensure proper collection and reporting by retailers. Specific exemptions, definitions, and enforcement mechanisms would be defined in the full bill text (e.g., what constitutes an OTC drug, how to treat bundled items, and credit for previously taxed items).

Who Would Be Affected

  • Consumers: Buyers of OTC drugs would benefit from reduced or eliminated sales tax on eligible products, potentially lowering out-of-pocket costs for common medications (e.g., pain relievers, allergy meds, cough/cold relief, and similar non-prescription products).
  • Retailers and Vendors: Retailers selling OTC drugs would administer the exemption at checkout, potentially simplifying consumer pricing for eligible items but requiring adjustments to point-of-sale systems and tax compliance processes.
  • State/Local Revenue: Potential reduction in sales tax collections on OTC drug purchases, with associated impacts analyzed in the fiscal note. The bill would be assessed for its revenue impact and any offsetting measures or budget considerations.

Timetable and Procedural Notes

  • Introduced: March 13, 2026
  • Initial Action: Read first time and referred to the Committee on Ways and Means (as of 2026-03-13)
  • Coauthors/Sponsors: Includes a broad slate of Assembly members (Sheehan, DeSmidt, Hysell, Joers, Johnson, Miresse, Neubauer, Palmeri, Sinicki, Udell, Snodgrass, Stubbs, Roe) and multiple Senators as cosponsors. Notable co-sponsors include: Alex Joers, Tara Johnson, Joe Sheehan, Christine Sinicki, Lee Snodgrass, Shelia Stubbs, Greta Neubauer, Randy Udell, Ann Roe, Andrew Hysell, Lori Palmeri, Vinnie Miresse, Ben DeSmidt.
  • Fiscal Review: A fiscal estimate was received on 2026-03-25, indicating that the bill’s potential revenue impact and budgetary effects are being analyzed by the Legislative Fiscal Bureau.
  • Current Status: As of the latest action, the bill has been referred to the Ways and Means committee for consideration; future steps would include committee testimony, potential amendments, and floor votes in the Assembly and Senate.

Potential Impact

  • Affordability of OTC Medications: If enacted, consumers would pay less (or no) sales tax on OTC drugs, potentially increasing purchase power and access to non-prescription medications.
  • Budget Implications: State and local tax revenue from OTC drug sales would decrease, necessitating examination of overall budgetary effects and potential offsets in the state’s revenue plan.
  • Administrative Burden: Retailers would implement or modify POS systems to apply the exemption, and government agencies would enforce the exemption and monitor compliant sales reporting.

This summary reflects the publicly available bill information and legislative actions up to the latest status reported. For a complete understanding, review the full bill text, fiscal note, and subsequent amendments if and when introduced.

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

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