LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION April 9, 2021 TO: Honorable Jane Nelson, Chair, Senate Committee on Finance FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB775 by Nichols (Relating to the applicability of the sales and use tax to medical billing services.), As Introduced No fiscal implication to the State is anticipated. The bill would amend Chapter 151, Tax Code, relating to sales and use taxation of insurance services.Section 151.0039 would be amended to provide that a medical billing service performed prior to the original submission of an insurance claim is not a taxable insurance service.Medical billing service would be defined as assigning codes for medical claims, verifying medical insurance eligibility, preparing medical claim forms, and filing medical claims.The bill would codify current Comptroller policy and therefore would have no revenue impact to the state or units of local government.The bill would take effect January 1, 2022. Local Government ImpactNo fiscal implication to units of local government is anticipated. Source Agencies: b > td > 304 Comptroller of Public Accounts LBB Staff: b > td > JMc, KK, SD
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION
April 9, 2021
TO: Honorable Jane Nelson, Chair, Senate Committee on Finance FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB775 by Nichols (Relating to the applicability of the sales and use tax to medical billing services.), As Introduced
TO: Honorable Jane Nelson, Chair, Senate Committee on Finance
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: SB775 by Nichols (Relating to the applicability of the sales and use tax to medical billing services.), As Introduced
Honorable Jane Nelson, Chair, Senate Committee on Finance
Honorable Jane Nelson, Chair, Senate Committee on Finance
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
SB775 by Nichols (Relating to the applicability of the sales and use tax to medical billing services.), As Introduced
SB775 by Nichols (Relating to the applicability of the sales and use tax to medical billing services.), As Introduced
No fiscal implication to the State is anticipated.
No fiscal implication to the State is anticipated.
The bill would amend Chapter 151, Tax Code, relating to sales and use taxation of insurance services.Section 151.0039 would be amended to provide that a medical billing service performed prior to the original submission of an insurance claim is not a taxable insurance service.Medical billing service would be defined as assigning codes for medical claims, verifying medical insurance eligibility, preparing medical claim forms, and filing medical claims.The bill would codify current Comptroller policy and therefore would have no revenue impact to the state or units of local government.The bill would take effect January 1, 2022.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: b > td > JMc, KK, SD
JMc, KK, SD