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F I S C A L I M P A C T R E P O R T
SPONSOR Youngberg
DATE TYPED 2-22-05
HB 715
SHORT TITLE Counseling and Therapy Practice Gross Receipts
SB
ANALYST Taylor
REVENUE
Estimated Revenue
Subsequent
Years Impact
Recurring
or Non-Rec
Fund
Affected
FY05
FY06
($213.0)
($455.0) Recurring
General Fund
NFI
NFI Recurring Local Governments
(Parenthesis ( ) Indicate Revenue Decreases)
Relates to SB 59
SOURCES OF INFORMATION
LFC Files
Taxation and Revenue Department
SUMMARY
House Bill 715 would expand the list of professionals allowed a gross receipts tax deduction for
receipts from certain payments from managed care providers or health care insurers to include
persons licensed or registered to practice counseling and therapy.
The bill has an effective date of January 1, 2006.
FISCAL IMPLICATIONS
TRD estimates that providing this gross receipts deduction will reduce general fund revenues by
$213 thousand in FY06 and $455 thousand in FY05. They report that in developing the estimate
they gathered and aggregated gross receipts data based on occupational and industry information.
The full year fiscal impact implies that the tax base (deductible licensed occupational and ther-
apy service payments) is approximately $6.9 million. This assumes a statewide gross receipts
tax rate of 6.6 percent. The FY05 impact is a little less than half the full year impact, reflecting
the January 1, 2006 effective.