Medical Billing Tax Delayed Until April 1
Texas Comptroller's Decision
TEMSA's last e-mail newsletter told you about the Texas Comptroller's decision to tax medical billing services. Since then, a delay until April 1, 2020, was announced. Click here to read about the delay.
The Comptroller's office is willing to answer questions. If you have a question about the new policy, please reply to this e-mail.
TEMSA's original note related to this issue can be found below. Legislative action is likely in the 2021 Texas Legislature.
The Texas Comptroller's office announced on November 22 that medical billing services will be taxed beginning on January 1, 2020. Click here to learn more from the Texas Medical Association.
For background, "insurance" is taxable under Texas law, and that is what the Comptroller's office determined in the ruling. Medical billing services were viewed by the Comptroller as taxable insurance claims adjustment or claims processing up until 2002.
In-house billing and non-profits that are recognized as sales tax-exempt by the Comptroller's office would be exempt.
TEMSA will pass along an update on this issue before the end of the year.
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