Wholesale Drug Distributor Tax

Legend drugs are drugs or gases required by federal law to be sold or dispensed in a container labeled with one of the following statements:

• "Caution: Federal law prohibits dispensing without prescription"
• "Rx only"

Legend drugs or gases must be classified by the U.S. Food and Drug Administration (FDA) as a drug and not a device.

Nutritional products, blood, and blood components are not considered legend drugs. However, blood derivatives derived from blood, plasma, or serum through a chemical manufacturing process are considered legend drugs.

You must file your annual return electronically using our e-Services system.

You can also pay your tax electronically in e-Services. For other payment options, see Make a Payment.

You must file your annual return and pay any tax owed by the due dates to avoid penalty and interest. If a due date falls on a weekend or holiday, your return and payment are due the next business day.

Return

MinnesotaCare tax returns are due annually on March 15 for the previous calendar year. If you cannot file by the due date, you may request a 60-day filing extension.

Payments

You must pay all tax owed by March 15. If you owe more than $500 for the year, you must make quarterly estimated payments. Estimated payments are due on April 15, July 15, October 15, and January 15 of the following year.

Quarterly estimated payments must be at least either:

• One-fourth of your actual tax for the previous year
• 90% of one-fourth of your actual tax for the current year

We may assess additional tax charge (ATC) on payments that are late or less than the required amount.

The tax rate is 2% through December 31, 2019, and is 1.8% starting January 1, 2020.

2019 Wholesale Drug Distributor Tax Instructions

2020 Wholesale Drug Distributor Estimated Tax Instructions

Prior year Wholesale Drug Distributor Tax Instructions