Texas Comptroller Don Huffines is encouraging Texans to comment on a proposed rule that would eliminate sales tax on the fees physicians and hospitals pay to access online medical records, according to an Oct. 28 news release from the Comptroller’s office.
The agency said the state currently charges sales tax on those fees, adding costs that drive up the price of health care. The release attributed the existing rule to previous leadership of the Comptroller’s office and said it subjects technology that stores or shares medical records to the tax.
“I want every Texan to know their voice truly matters in this process,” Huffines said in the release. “This rule change is about restoring fairness, and the public’s perspective is essential. I encourage Texans from every corner of the state to speak up and help us build the strongest record possible.”
According to the release, the proposed change would clarify that such technology is neither taxable information services nor taxable data processing services. It would end taxes on charges for electronic health record systems, electronic medical record systems, patient portals and other health care technology systems used to maintain, access or share medical records, the agency said.
Earlier this month, Huffines issued an executive order directing the agency to publish a proposed amendment to Rule 3.342, which governs the taxation of information services, the release said. The proposed amendment has been filed with the Texas Secretary of State and is scheduled to be published in the Texas Register on Friday, Oct. 30, followed by a 30-day public comment period, according to the agency.
Texans can submit comments by mail to Robin Robinson, associate deputy comptroller for tax, at P.O. Box 13528, Austin, Texas 78711, or by email to Robin.Robinson@cpa.texas.gov, the release said. The Comptroller’s office must receive comments no later than 30 days after the proposal is published in the Texas Register.
“Texans deserve transparency and fairness in every corner of government. A tax that quietly penalizes people for accessing their own medical information has no place in our system. This rule change restores common sense and removes an unnecessary burden on families and healthcare providers,” Huffines said.