Texas Comptroller Glenn Hegar announced last week that he will delay the implementation of a sales tax on medical billing services until the Texas Legislature considers the proposed change when it meets in a regular session in 2021. The Comptroller’s staff will work with industry leaders leading up to the 140-day session in order to develop language that could amend the state’s sales tax statutes. The regular session of the Texas Legislature is scheduled to begin January 12, 2021, and end June 1, 2021.

Our prior article discussed the Texas Comptroller’s policy change in the fourth quarter of 2019, which would have rendered medical billing services subject to Texas sales tax, after longstanding reliance on rulings which exempted such services.

The Texas Comptroller subsequently delayed applicability of this policy from January 1, 2020 to April 1, 2020. Following additional comments and review, the Texas Comptroller has decided to delay the policy even further. The policy will still take effect on October 1, 2021 if a legislative change is not enacted during the session.

Taxpayers impacted by this now-delayed policy are encouraged to contact a member of the Texas Husch Blackwell Healthcare Law team.

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Photo of Albert Lin Albert Lin

Albert represents hospital districts, large hospital systems, physician groups of all sizes and practice specialties, management companies and nonprofit healthcare organizations at every stage in their lifecycle. He enjoys being a part of a team that can handle complex mergers and transactions in

Albert represents hospital districts, large hospital systems, physician groups of all sizes and practice specialties, management companies and nonprofit healthcare organizations at every stage in their lifecycle. He enjoys being a part of a team that can handle complex mergers and transactions in the healthcare field alongside members of Husch Blackwell’s regulatory team.

Albert has particularly significant experience in the nonprofit, tax-exempt organizations area and is part of the Husch Blackwell nonprofit organizations group, having handled virtually all aspects of tax and transactional matters for the healthcare industry. He has applied for and received tax-exempt status for dozens of organizations and has been a frequent writer on the topic for state and national publications, such as the Texas Tax Lawyer and Wolters Kluwer Exempt Organization Reports.

Photo of Mark Vane Mark Vane

A lawyer at Husch Blackwell and a principal at HB Strategies, Mark helps clients develop public policy and tackle high-stakes issues at the Texas State Capitol and state agencies. A dynamic and nonpartisan advocate, Mark aims to improve the business climate for industry

A lawyer at Husch Blackwell and a principal at HB Strategies, Mark helps clients develop public policy and tackle high-stakes issues at the Texas State Capitol and state agencies. A dynamic and nonpartisan advocate, Mark aims to improve the business climate for industry and helps clients develop and comply with state and local laws, rules and regulations.