Minnesota MinnesotaCare Pharmacy Refund

MinnesotaCare Pharmacy Refund
2023 MinnesotaCare Pharmacy Refund Instructions
MinnesotaCare Taxes

2023 Pharmacy Refund

Instructions for filing your MinnesotaCare Pharmacy Refund Return (Minnesota Statutes, sections 295.50 through 295.59)
For Minnesota pharmacies only

Contact Us
Website/e-Services
www.revenue.state.mn.us

MinnesotaCare Taxes

Your 2023 Pharmacy Refund Return is Due March 15, 2024
File your return electronically starting January 22, 2024.
Go to our website and log in to e-Services to file.

Email

What’s New

Phone

2024 Tax Rate

[email protected]
651-282-5533
Weekdays, 8 a.m. to 4:30 p.m.

The Pharmacy Refund rate will be 1.8% starting with refund claims for the 2024 tax year.

Fax

Revenue from MinnesotaCare taxes is deposited into Minnesota’s Health Care Access Fund.
The tax rate will change to 1.8% in 2024 to bring the fund into balance, therefore the refund
rate will also change. For more information about the change, refer to Minnesota Statutes
295.52, subdivision 8.

Business Registration

Important Reminders

[email protected]

2022 Pharmacy Refund Deadline

651-556-5233

Email

651-282-5225 or 1-800-657-3605

The final deadline to claim a 2022 Pharmacy Refund is March 15, 2024. We will not allow
refund claims filed after this date.

Contents

The refund rate is 1.6% for 2023. The interest rate is 5% for 2023.

Phone

2023 Refund Rate and Interest Rate

What’s New . . . . . . . . . . . . . . . . . . . . . 1
Important Reminders . . . . . . . . . . . . . . 1
Receive Email Updates . . . . . . . . . . . . 1
Register for a Minnesota Tax ID
Number . . . . . . . . . . . . . . . . . . . . . . . 1
General Information. . . . . . . . . . . . . . . 2
Who is Eligible
Qualifying Legend Drugs
Definition of Legend Drugs
Filing Due Date
Reporting Business Changes
Recordkeeping
Statute of Limitations
How to File Your Annual Return . . . . . 3
How to Amend Your Return. . . . . . . .3-4
Manage Your Profile in e-Services. . .4-5

Receive Email Updates

This information is available in alternate
formats.

If you do not have a Minnesota ID number, you must register for one. You can register on
our website at www.revenue.state.mn.us or by contacting Business Registration (refer to
Contact Us on this page). You can add a Pharmacy Refund account at the same time you
register for a Minnesota ID number.

Stay informed about MinnesotaCare taxes! Sign up to receive email updates about:
• Filing and payment due date reminders
• New or updated publications
• Educational tax seminars
• Tax law changes
To sign up, go to our website at www.revenue.state.mn.us and subscribe to email updates.
Enter your email address and select MinnesotaCare Tax Updates from the list.

Register for a Minnesota Tax ID Number

You need a Minnesota Tax ID Number and a MinnesotaCare Pharmacy Refund account
to file returns. A Minnesota ID number is a seven-digit number assigned to you when you
register with the Minnesota Department of Revenue.

If you currently have a Minnesota ID number for other Minnesota taxes, you can add a
Pharmacy Refund account to your number. To add an account, go to our website and log in
to e-Services or contact Business Registration.

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General Information
Who is Eligible

Minnesota pharmacies that purchase qualifying legend drugs can claim the MinnesotaCare Pharmacy Refund if they later deliver or ship the
drugs to locations outside of Minnesota.
The refund rate is 1.6%.

Qualifying Legend Drugs

Minnesota pharmacies can only claim a Pharmacy Refund on qualifying legend drugs. Qualifying legend drugs are legend drugs purchased
from a wholesale drug distributor subject to MinnesotaCare Wholesale Drug Distributor Tax.
To determine if a wholesale drug distributor is subject to tax, check your purchase invoice for a MinnesotaCare tax expense charge or contact
the wholesaler for verification.

Definition of Legend Drugs

Legend drugs are drugs or gases required by federal law to be sold or dispensed in a container labeled with one of these 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 legend drugs and cannot be used to claim the refund.
Blood derivatives, however, that are derived from blood, plasma, or serum through a chemical manufacturing process, are legend drugs and
may be used to claim the refund.

Filing Due Date

Your Pharmacy Refund Return is due annually by March 15 for drugs delivered or shipped outside of Minnesota during the previous calendar
year.
The 2023 Pharmacy Refund Return is due March 15, 2024.
The final deadline to claim the 2023 refund is March 17, 2025. We will not allow refund claims that are filed more than one year after the
original due date of the return.

Reporting Business Changes

Be sure to update your business information if any of these apply:
• You changed the name, address, owner/officers, or ownership of your business
• You changed contact information (such as email address, phone number, or contact person)
• You need to add or close a tax account
• You closed your business
To update your business information, go to our website and log in to e-Services. For more information, refer to Manage Your Profile in
e‑Services on Page 4.

Recordkeeping

Keep all internal accounting records and external third-party documentation that support the amounts reported on your Pharmacy Refund
Return.
This includes any paper records and any records you receive or store electronically. Some examples of paper and electronic records include:
• Legend drug purchase invoices
• Records verifying drugs delivered or shipped outside of Minnesota
• Records verifying any drugs returned to you after they were delivered or shipped outside of Minnesota
• Audited and compiled financial statements
• All other summary and detail reports, schedules, ledgers, and journals
• Computer system or software back-ups
If you are audited, you will need to provide four to six years of records. All documentation must be made available for the department to
review. Refunds may be denied if your documentation is incomplete.

Statute of Limitations

The department may audit your return within 3½ years from the original due date of the return or the date you filed the return, whichever is
later. There is no time limit if we find you have fraudulently claimed a refund or reported false information.

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How to File Your Annual Return
Your 2023 MinnesotaCare Pharmacy Refund Return is due March 15, 2024.
File your return using our e-Services system starting January 22, 2024.

Information You Need to File Your Return

You must file your Pharmacy Refund Return electronically using our e-Services system. Go to our website at www.revenue.state.mn.us to
log in to e-Services. Before you can file your return, you need this information:
• Your username and password
• Total legend drug purchases made during the year
• Total legend drug purchases delivered outside of Minnesota
• Total returned legend drug purchases that were delivered outside of Minnesota
Refer to the Line Instructions on this page for help calculating these amounts.
You must have a Pharmacy Refund account to file a return. To add an account, log in to e-Services or contact Business Registration (refer
to Contact Us on Page 1).
If you have an account, but the period you are filing is not listed in e-Services, call the MinnesotaCare Taxes Unit at 651-282-5533 so we can
add it to your account.

Line Instructions

Use this information when you electronically file your return.
Legend Drug Purchases

Report the total amount you paid during the year for qualifying legend drugs that you purchased from wholesale drug distributors subject to
Wholesale Drug Distributor Tax.
Do not include amounts paid for:
• Drugs or devices that are not legend drugs
• Legend drug purchases on which you paid MinnesotaCare Legend Drug Use Tax. (Note: To claim a refund of Legend Drug Use Tax,
amend your Legend Drug Use Tax Return. Do not file a Pharmacy Refund Return.)
For the definition of legend drugs and information on qualifying legend drugs, refer to Page 2.

Legend Drug Purchases Delivered Outside of Minnesota

Report the total amount you paid for qualifying legend drugs (regardless of when you purchased the drugs) that you delivered or shipped
outside of Minnesota during the year.

Legend Drugs Returned to You

Report the total amount you paid for qualifying legend drugs delivered or shipped outside of Minnesota (regardless of when you purchased,
delivered, or shipped the drugs) that were returned to you during the year.

Pharmacy Refund

Our e-Services system will calculate your refund. The refund rate for 2023 is 1.6%.

How to Amend Your Return
To adjust your return, you must file an amended return electronically using our e-Services system.
You must file your amended return within 3½ years of the original due date for the year you are amending.
Keep all supporting documentation for any amended return you file. All documentation should be made available on request for the
department to review. All amended returns are subject to audit.

Filing Instructions

To amend a return, follow these steps:
1. Go to our website at www.revenue.state.mn.us and log in to e-Services.
2. Select Returns and Periods for your Pharmacy Refund account.
3. Select View or Change Return for the return you want to amend.
4. Select Change on the return screen.
5. Enter your corrected amounts, contact information, and the reason you are amending the return.
6. Follow the remaining prompts and select Submit.

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How to Amend Your Return (continued)
You will receive a confirmation number if your amended return is filed successfully. If you need help or have questions about amending a
return, please contact us.

Paying a Balance Due

If you amend your Pharmacy Refund Return for less than the amount you claimed on your original return, you must pay the amount due plus
interest. Our e-Services system will calculate the interest for you.

Electronic Payment Requirements

You must pay electronically if your tax liability was more than $10,000 for any one Minnesota business tax during the previous fiscal year
(July 1 – June 30).
If you are required to pay any Minnesota business tax electronically for one year, you must pay all Minnesota business taxes electronically
for all future years. We will send you a notice the first year you are required to pay electronically.
We will assess a 5% payment method penalty on any non-electronic payments if you do not pay electronically when required.

Electronic Payment Options
e-Services

You can make your payment using our online e-Services system when filing your amended return. You will need your bank routing and
account numbers. You cannot use a foreign bank account. If you pay through e-Services, you can view a record of your payments online once
they have processed.

Automated Clearing House (ACH) Credit

ACH credit payments are initiated by you through your bank. You authorize your bank to transfer funds to the state’s bank account. The bank
must use ACH file formats, which are available on our website. Your bank may charge you a fee for these payments.

Bank Wire

You can authorize a direct transfer from your bank account to the department. For information on how to make a bank wire transfer, call us at
651-556-3003 or 1-800-657-3909.

Manage Your Profile in e-Services
Our e-Services system lets you:
•
•
•
•

Update your profile information
Store your email address, phone number, and banking information
Create access to your and other people’s accounts
Add additional users with varying security, as well as request and approve third-party access

Set Up and Manage Users
Access Types

There are two access types to choose from in e-Services:
• e-Services Masters can view, file returns, and/or make payments for one or more accounts. They can add, delete, and change security
levels for all users.
• Account Managers can view, file returns, and/or make payments for one or more accounts depending on the access level an e-Services
Master has set up for the user.

Access Levels

e-Services access level options include:
•
•
•
•

All Access - allows user to view all information, file returns, make payments, and update account information
File - allows user to view all information and file returns
Pay - allows user to view all information and make payments
View - allows user to only view all information

Two-Step Verification

Two-step verification adds a second layer of security to prevent unauthorized access to your account. You must enter a username, password,
and a verification code we send you to log in to your account.

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Manage Your Profile in e-Services (continued)
Third-Party Access

Third-party access provides a secure and convenient way for users to manage accounts, file returns, and/or make payments for other
businesses.
Both parties must work together to establish this access. First, a user must request third-party access from a customer in e-Services. Second,
the customer must approve or deny the access request in e-Services.
For more information, go to our website at www.revenue.state.mn.us and enter Third-Party Access in the Search box.

(Rev. 12/23)

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