Did Illinois decide whether nonprescription sales of the Plan B morning-after pill qualified for the reduced drug tax rate?

Plain-English summary

The Department did not expressly decide whether nonprescription Plan B received the reduced drug rate. It supplied the general label-based test instead.

A pill or other preparation for human use qualified as a medicine or drug when its label claimed medicinal qualities, such as curing, treating, or mitigating disease, illness, injury, pain, or symptoms. The fact that a product could be sold without a prescription did not by itself place it at the general merchandise rate.

The rule separately excluded nonprescription grooming and hygiene products, even when they made medicinal claims, unless available only by prescription.

What this means for you

Use the product's actual label and current drug-versus-grooming rule. Do not infer the answer solely from whether a prescription is required.

Common questions

Q: Did the GIL say Plan B was taxed at the reduced rate?
A: No specific classification was given.

Q: Were all over-the-counter products taxed at the general rate?
A: No.

Subject

Drugs

Source

• Landing page: https://taxarchive.illinois.gov/research/legal/letter-rulings/sales-tax/2010.html
• Original PDF: https://tax.illinois.gov/content/dam/soi/en/web/taxarchive/research/legal/letter-rulings/sales-tax/2010/st-10-0086.pdf

Original ruling text

ST 10-0086-GIL 09/30/2010 DRUGS
A medicine or drug is “any pill, powder, potion, salve, or other preparation intended by the
manufacturer for human use and which purports on the label to have medicinal qualities.” See
86 Ill. Adm. Code 130.310. (This is a GIL.)

September 30, 2010

Dear Xxxxx:
This letter is in response to your letter dated June 18, 2010, in which you request information.
The Department issues two types of letter rulings. Private Letter Rulings (“PLRs”) are issued by the
Department in response to specific taxpayer inquiries concerning the application of a tax statute or
rule to a particular fact situation. A PLR is binding on the Department, but only as to the taxpayer
who is the subject of the request for ruling and only to the extent the facts recited in the PLR are
correct and complete. Persons seeking PLRs must comply with the procedures for PLRs found in the
Department’s regulations at 2 Ill. Adm. Code 1200.110. The purpose of a General Information Letter
(“GIL”) is to direct taxpayers to Department regulations or other sources of information regarding the
topic about which they have inquired. A GIL is not a statement of Department policy and is not
binding on the Department. See 2 Ill. Adm. Code 1200.120. You may access our website at
www.tax.illinois.gov to review regulations, letter rulings and other types of information relevant to your
inquiry.
The nature of your inquiry and the information you have provided require that we respond with
a GIL. In your letter you have stated and made inquiry as follows:
COMPANY would like a written opinion on the sales taxability of the ‘morning-after pill’,
or Plan B, when purchased without a prescription. Prescription is required if sold to
women age 16 or under, but no prescription is necessary if sold to women age 17 or
older.
If sold without a prescription, would sales tax apply as it would with any other over-thecounter product?
Thank you for your assistance.

DEPARTMENT’S RESPONSE:
Although we cannot give you a specific answer in the form of a General Information Letter, we
hope you find the following helpful.
Please see the Department’s regulation at 86 Ill. Adm. Code Section 130.311, which is its
regulation governing Drugs, Medicines, Medical Appliances and Grooming and Hygiene Products.
Those products that qualify as drugs, medicines and medical appliances are taxed at a lower State

rate of 1% plus any applicable local taxes. Those items that do not qualify for the low rate of tax are
taxed at the general merchandise rate of 6.25% plus applicable local taxes.
A medicine or drug is any pill, powder, potion, salve, or other preparation for human use that
purports on the label to have medicinal qualities. A written claim on the label that a product is
intended to cure or treat disease, illness, injury or pain, or to mitigate the symptoms of such disease,
illness, injury or pain constitutes a medicinal claim. See Section 130.311 for examples of medicinal
claims. As of September 1, 2009, the term "nonprescription medicines and drugs" does not include
grooming and hygiene products. Grooming and hygiene products include, but are not limited to,
soaps and cleaning solutions, shampoo, toothpaste, mouthwash, antiperspirants, and sun tan lotions
and screens, unless those products are available by prescription only. If an item is a nonprescription
grooming and hygiene product, it will be taxed at the State 6.25% general merchandise rate
regardless of any medicinal claims made on the product’s label.
I hope this information is helpful. If you require additional information, please visit our website
at www.tax.illinois.gov or contact the Department’s Taxpayer Information Division at (217) 782-3336.
Very truly yours,

Debra M. Boggess
Associate Counsel
DMB:msk