Texas Comptroller Don Huffines signed an Oct. 6 executive order directing his office to end sales tax treatment for systems used to maintain, access or share medical records.
His office says the change covers electronic health record and electronic medical record systems, patient portals and similar health care technology. It has yet to state when the changed treatment will take effect.
Comal County doctors’ offices and clinics that pay for electronic medical-records systems or patient portals are among the Texas practices the change could affect. The comptroller says doctors had been charged sales tax to access their patients’ electronic records and that Texans could also face a tax when accessing their own medical information. The release does not establish how much any local practice or patient paid.
The comptroller’s stated legal position is that these systems are neither taxable information services nor taxable data processing services. That is the agency’s explanation for changing its treatment of the charges; the announcement does not provide a dollar estimate of the savings or describe a refund process for tax already paid.
Next, the agency says it will file a proposed amendment to Rule 3.342 with the Texas Secretary of State for publication in the Texas Register, followed by a 30-day public comment period. The comptroller’s Oct. 6 notice is the place to check the categories of systems covered; the forthcoming rule filing should clarify the proposal and the comment window.