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SB 6228

Removing a tax exemption for the warehousing and reselling of prescription drugs. (REVISED FOR ENGROSSED: Removing a tax exemption for the warehousing and reselling of prescription drugs and providing tax relief for critical access pharmacies.)

2025-2026 Regular Session Introduced by Manka Dhingra and 2 co-sponsors

Washington bill removes sales tax exemption for prescription drug warehousing and resale, generating state revenue but potentially increasing distribution costs passed to consumers.

Effective date 1/1/2027.
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Bill Summary · SB 6228

Legislative bill overview

SB 6228 eliminates a sales tax exemption currently applied to the warehousing and reselling of prescription drugs in Washington State. This means distributors and wholesalers in the prescription drug supply chain would become subject to the state's sales tax on these transactions, generating additional state revenue.

Why is this important

Removing tax exemptions directly affects the cost structure of prescription drug distribution, which could theoretically increase costs downstream to pharmacies, insurers, and ultimately consumers. The bill represents a policy choice about whether prescription drug logistics should receive preferential tax treatment compared to other medical supply chains, with revenue implications for the state budget.

Potential points of contention

  • Drug cost concerns: Critics may argue that taxing pharmaceutical distribution increases costs in an already expensive healthcare system, potentially raising prescription prices for patients and burdening insurance premiums
  • Industry competitiveness: Wholesalers and distributors may argue the exemption removal puts Washington companies at a disadvantage compared to out-of-state competitors or creates administrative burden
  • Revenue adequacy vs. need: Supporters must justify whether the tax revenue generated outweighs potential negative effects on medication access or healthcare costs in the state

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

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