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F I S C A L I M P A C T R E P O R T





SPONSOR: Sanchez, J. DATE TYPED: 02/07/01 HB 370
SHORT TITLE: Gross Receipts Deductions for Doctors SB
ANALYST: Eaton


REVENUE



Estimated Revenue
 Subsequent

Years Impact

 Recurring

or Non-Rec

 Fund

Affected

FY01 FY02
$ (4,700.0) $ (10,400.0) Recurring General Fund
$ (3,800.0) $ (8,400.0) Recurring Local Govt.

(Parenthesis ( ) Indicate Revenue Decreases)



Duplicates/Conflicts with/Companion to/Relates to Senate Bill 5, Senate Bill 191, Senate Bill 195, House Bill 94, House Bill 202, 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 three year phase-in for doctors and osteopaths; HB-253 is a 50% deduction for licensed health practitioners; 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 is a proposal for a five-year phased-in deduction for doctors and osteopaths only, where the deduction is applied after the Medicare B deduction from providing medical and other health services as follows.













FISCAL IMPLICATIONS



The Taxation and Revenue Department (TRD) estimates the cost of the deduction as described in the following table.



ADMINISTRATIVE IMPLICATIONS

Minimal.



OTHER SUBSTANTIVE ISSUES



This bill restricts the gross receipts tax deduction only to physicians, both MDs and osteopaths. Practitioners that are not covered by this bill include: chiropractors, dentists or dental hygienists, physician assistants, doctors of oriental medicine, podiatrists, psychologists, RNs or LPNs, midwife practitioners, physical therapists, occupational therapists, respiratory care technicians, optometrists, licensed massage therapists, non PA emergency technicians and ambulance services, speech and auditory therapists and most home health care.



JBE/njw