Medical billing services free from sales tax after Texas governor signs bill


Texas Gov. Greg Abbott signed a law exempting medical or dental billing services from sales tax, The National Law Review reported May 5.

In November 2019, the Texas Comptroller's office released a notice saying it would treat medical billing services as taxable insurance services, but the notice was delayed through October 2021, according to the article.

Under the new law, HB 1445, a medical or dental billing service is defined as "assigning codes for the preparation of a medical or dental claim, verifying medical or dental insurance eligibility, preparing a medical or dental claim form for filing and filing a medical or dental claim."

The Comptroller's office may assert that the legislative definition of "medical or dental billing services" is too narrow and that some items are subject to tax come October, the article said. 

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