General Information For Filing Pharmaceutical Provider Tax Returns

All pharmaceutical providers except for pharmacies, or portions thereof, serving hospital inpatients and pharmacies owned or operated by the State of Alabama or any agency thereof, must remit the Alabama Pharmaceutical Provider Tax to the Alabama Department of Revenue ("ADOR").
The return and remittance are due on or before the twentieth day of the month following the month covered by the return.
NOTE: EFT payment information must be transmitted by 4:00 p.m. CST (Central Standard Time) on or before the due date, to be considered timely paid.

Returns filed after the due date are subject to a "failure to timely file" penalty equal to the greater of 10% of the tax required to be paid on the return or $50.00. Tax payments received after the due date are subject to a "failure to timely pay" penalty equal to 10% of the delinquent tax. If the tax is not timely paid, interest is also due at the same rate established by the Secretary of the Treasury under authority of 26 USC 6621.
Instructions For Filing Alabama Pharmaceutical Provider Tax Returns
Line 1

TOTAL NUMBER OF PRESCRIPTIONS FILLED OR REFILLED:
Enter total number of prescriptions filled or refilled during the calendar month covered by the return.
Line 2
 LESS: NONTAXABLE PRESCRIPTIONS FILLED OR REFILLED:
Enter number of nontaxable prescriptions included in Item 1.  Prescriptions filled or refilled for persons who are not citizens of Alabama are excluded from the tax.  Your records must substantiate such exemption claims.
Line 3
 TOTAL NUMBER OF PRESCRIPTIONS FILLED OR REFILLED FOR ALABAMA CITIZENS:
Total number of taxable prescriptions will be calculated.  (Line 1 minus Line 2)
Line 4

GROSS TAX:
Gross tax will be calculated.  (Line 3 x $.10)
Line 5
PENALTY, IF DUE:
Returns filed after the due date are subject to a "failure to timely file" penalty equal to the greater of 10% of the tax required to be paid on Line 7 of the return or $50.00. Tax payments received after the due date are subject to a "failure to timely pay" penalty equal to 10% of the delinquent tax.
NOTE: If your return or payment is not timely filed, you will be billed the appropriate penalties and interest by the ADOR.
Line 6
INTEREST, IF DUE:
If the tax is not timely paid, interest is due at the same rate established by the Secretary of the Treasury under authority of 26 USC 6621.  (Click here to determine current interest rates.)
NOTE: If your return or payment is not timely paid, you will be billed the appropriate penalties and interest by the ADOR.
Line 7
CREDIT CLAIMED:
Use Line 7 to claim an amount of credit for a prior overpayment. The credit claimed will be applied to reduce the tax liability shown on the return.
NOTE: Any credit for prior overpayment must be approved in advance by the ADOR. Credit claimed should not exceed the sum of Line 4 (Tax Due) plus Lines 5 & 6 (Penalty & Interest). Valid excess credit can be claimed on subsequent returns.
Line 8
TOTAL AMOUNT DUE:
The total amount due is the result of Line 4 (Tax Due) plus Lines 5 & 6 (Penalty & Interest) minus Line 7 (Credit Claimed).