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| SPONSOR: | Hobbs | DATE TYPED: | 02/06/01 | HB | 253 | ||
| SHORT TITLE: | Health Practitioners 50% Tax Deduction | SB | |||||
| ANALYST: | Eaton | ||||||
| Subsequent
Years Impact |
Recurring
or Non-Rec |
Fund
Affected | ||
| FY01 | FY02 | |||
| $ (15,100.0) | $ (17,500.0) | Recurring | General Fund | |
| $ (12,200.0) | $ (14,100.0) | Recurring | Local Govt. | |
(Parenthesis ( ) Indicate Revenue Decreases)
Relates to Senate Bill 5, Senate Bill 191, Senate Bill 195, House Bill 94, House Bill 227, House Bill 253, House Bill 326
SB-5 is a three-year phased-in deduction for licensed health practitioners; SB-191 is a GRT Credit for Hospitals; SB-195 proposes a deduction for Medicare receipts of podiatrists; HB-94 is the "TRICARE" deduction for active duty military and military retirees and their families; HB-202 is a 100% immediate deduction for licensed health practitioners; HB-227 is a proposal for a three-year phased-in deduction for doctors and osteopaths only, where the deduction is applied after the Medicare B deduction (as in HB-253); HB-326 is a proposal for a deduction for receipts of nursing homes.
SOURCES OF INFORMATION
Taxation and Revenue Department (TRD)
SUMMARY
Synopsis of Bill
The bill provides an immediate, 50% deduction for receipts of almost all health practitioners. The bill lists virtually all the licensed health practitioners: physicians, osteopaths, chiropractic physicians, physician assistants, dentists, dental hygienists, doctors of oriental medicine, podiatrists, psychologists, RNs and LPNs, registered lay midwives, physical therapists, occupational therapists and respiratory care practitioners.
FISCAL IMPLICATIONS
The Taxation and Revenue Department (TRD) estimates the cost of the deduction as described in the following table.
ADMINISTRATIVE IMPLICATIONS
Minimal.
TECHNICAL ISSUES
The Taxation and Revenue Department (TRD) counsel is concerned that the restrictive language of this bill may exclude from the deduction receipts of clinics, LLCs and for-profit hospitals that employ licensed professionals. The clinic's receipts are not deductible, since they are not licensed in the specialty. The use of the word "his" (page 12, line 13) in the final sentence reinforces the idea that the deduction is personal to the doctor, not company-wide. TRD counsel suggests the services provided by licensed health care professionals should be the subject of the deduction. Since this issue is common to a number of bills, a formula for dealing with it should be developed.
OTHER SUBSTANTIVE ISSUES
This bill includes receipts of chiropractors, dentist or dental hygienist, physician or physician assistant, osteopathic physician, doctor of oriental medicine, podiatrist, psychologist, RN or LPN, midwife practitioner, physical therapist, occupational therapist and respiratory care technician. Omitted are optometrists, licensed massage therapists, non PA emergency technicians and ambulance services, speech and auditory therapists and most home health care.
JBE/njw:ar