September 25, 2021

Volume XI, Number 268

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September 24, 2021

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September 23, 2021

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September 22, 2021

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Texas Comptroller Announces Medical or Dental Billing Services are Not Taxable, Effective Immediately

On June 4, 2021, the Texas Comptroller issued a policy statement (Accession No. 202106003L) announcing that it is not going to enforce its previously stated policy of taxing medical billing services. This guidance comes in response to a sales and use tax bill that was signed into law April 30, 2021, which excluded “medical or dental billing services” performed prior to the original submission of a medical or dental insurance claim from insurance services. The Comptroller states that it will immediately treat medical or dental billing services as excluded from the definition of insurance services even though the bill is not effective until January 1, 2022. It remains to be seen if the Comptroller’s interpretation of medical billing services, which has been defined through decades of policy and guidance, is aligned with the legislature’s view of “medical or dental billing services.” Some commentators have suggested there may be points of divergence that will need to be worked out over time. For additional information on this topic, please see our prior blog post.

© 2021 McDermott Will & EmeryNational Law Review, Volume XI, Number 210
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About this Author

Partner

Richard C. Call is a partner in the law firm of McDermott Will & Emery LLP and is based in the Firm's Boston office.  He focuses his practice on state and local tax litigation before administrative and judicial bodies, at all levels and in multiple states, with respect to income, franchise, gross receipts, and sales and use taxes.  He also advises clients on the state and local tax consequences of business restructurings, as well as the impact of new state legislation on current business operations.

Richard is a frequent publisher on state and local tax topics.  He has published...

212-547-5333
Associate

Jonathan C. Hague focuses his practice on state and local tax matters. He assists businesses and individual taxpayers with state and local tax controversies, compliance and multistate planning opportunities across a variety of tax types, including income, sales and use, and tax credits. Jonathan also works closely with several of the Firm’s taxpayer coalitions focused on specific state tax policy issues such as the taxation of digital goods and services.

212-547-5658
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