Washington 2023-2024 Regular Session

Washington House Bill HB1812

Introduced
2/10/23  
Refer
2/10/23  
Report Pass
2/22/23  
Refer
2/24/23  
Engrossed
3/16/23  
Refer
3/20/23  
Report DNP
3/21/23  
Refer
3/22/23  
Report Pass
4/3/23  
Enrolled
4/22/23  
Chaptered
5/4/23  

Caption

Continuing the business and occupation tax deduction for federal funds received from a medicaid transformation or demonstration project or medicaid quality improvement program or standard.

Impact

The implications of HB 1812 on state laws are considerable, particularly for businesses operating within the healthcare sector. By ensuring that federal funds from Medicaid-related programs are not subject to state business and occupation taxes, HB 1812 could incentivize more companies to engage with Medicaid, ultimately benefiting the state's healthcare landscape. It also aligns state tax policies with federal funding streams, creating a smoother operational environment for healthcare providers. This alignment is particularly important as states seek to optimize the use of federal resources in improving healthcare access and outcomes.

Summary

House Bill 1812 aims to continue the business and occupation tax deduction for federal funds received from Medicaid transformation or demonstration projects, as well as Medicaid quality improvement programs. This bill is significant as it seeks to alleviate the tax burden on businesses engaged with Medicaid funding, thereby potentially encouraging more efficient healthcare delivery and innovative services. Proponents of the bill argue that maintaining these tax deductions is critical for sustaining and enhancing healthcare services, particularly amidst ongoing fiscal challenges faced by healthcare providers.

Sentiment

The general sentiment surrounding HB 1812 appears to be favorable among healthcare advocates and certain legislators who view the bill as a necessary step to support healthcare service providers. Nonetheless, there are concerns among fiscal conservatives who worry about the long-term impact of such tax deductions on the state budget. While supporters celebrate the potential positive effects on healthcare quality and availability, detractors caution about the implications for state revenue and the prioritization of funding.

Contention

Notable points of contention regarding HB 1812 revolve around the balance between supporting healthcare providers through tax incentives and maintaining state revenue. Critics of the bill argue that tax deductions could lead to significant budget strains, especially if similar deductions expand. The debate raises questions about responsible fiscal strategy in the context of rising healthcare costs and limited state resources, making it a pivotal topic of discussion among lawmakers as the bill progresses through the legislative process.

Companion Bills

No companion bills found.

Previously Filed As

WA HB1684

Clarifying procedures for federally recognized tribes to report standard occupational classifications or job titles of workers under the employment security act.

WA SB5166

Reauthorizing the business and occupation tax deduction for cooperative finance organizations.

WA HB1191

Reauthorizing the business and occupation tax deduction for cooperative finance organizations.

WA SB5493

Revised for 1st Substitute: Limiting a business and occupation tax deduction for financial institutions to fund affordable housing.Original: Eliminating a business and occupation tax deduction for financial institutions to fund affordable housing.

WA LB692

Adopt the Good Life Transformational Projects Act and change the sales tax rate

WA LB195

Provide immunity for administration of naloxone, nalmefene, or other federally approved opioid overdose reversal medications

WA HB2081

Modifying business and occupation tax surcharges, rates, and the advanced computing surcharge cap, clarifying the business and occupation tax deduction for certain investments, and creating a temporary business and occupation tax surcharge on large companies.

WA SB5815

Modifying business and occupation tax surcharges, rates, and the advanced computing surcharge cap, clarifying the business and occupation tax deduction for certain investments, and creating a temporary business and occupation tax surcharge on large companies.

WA HB1320

Modifying business and occupation tax rates to fund programs and services to benefit Washingtonians.

WA HB1768

Exempting certain sales of electricity to qualifying green businesses from the public utilities tax.

Similar Bills

No similar bills found.