Texas House Bill HB746

Texas 2015 - 84th Regular

Caption

Relating to the exclusion from total revenue of certain payments received by health care providers for purposes of computing the franchise tax.

Impact

The potential implications of this bill are significant. By permitting health care providers to exclude these payments from taxable revenue, it is expected to ease the financial burden on these entities, possibly leading to increased operational capabilities and greater focus on providing care. The bill also aims to encourage more participation in state health programs by health care providers, thereby potentially enhancing access to health services for Texas residents who rely on such programs, aligning with broader public health initiatives.

Summary

House Bill 746 aims to amend the Texas Tax Code by allowing health care providers to exclude certain payments from their total revenue when calculating their franchise tax. This exemption encompasses payments made under various health care programs such as Medicaid, Medicare, the Indigent Health Care and Treatment Act, the Children's Health Insurance Program, as well as compensation related to workers’ compensation claims and services under the TRICARE military health system. The bill is positioned to relieve health care entities from having to account for revenue generated by these programs when determining their tax obligations.

Contention

However, discussions surrounding HB746 may include various points of contention, primarily concerning the equity of tax structures and the implications of giving preferential treatment to health care providers. Critics may argue that the exclusion of these payments from total revenue could contribute to budget shortfalls in state tax revenues, thus impacting funding for other essential public services. There may also be concerns about the long-term sustainability of such tax relief measures and their potential impact on state-funded health programs that rely on stable revenue streams.