Date Requested:March 15, 2005
Time Requested:11:36 AM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2005R1567 Intro HB3039
CBD Subject: Tax Credit to Medical Providers
FUND(S)
Medicaid State Share Fund
Sources of Revenue
Other Fund Medicaid State Share Fund
Legislation creates:
A New Program

Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

    The stated purpose of this bill is to provide a tax credit to medical providers in an amount equal to their investment in electronic medical record technology.
    
    As written, this bill would provide a Health Care Provider Tax credit to medical providers for their investment in electronic medical record technology without consideration of their Health Care Provider Tax liability. The Tax Department does not have access to the data necessary to calculate the revenue impact of this proposal. However, the reduction in the Medicaid State Share Fund as a result of passage of this bill could be significant.
    
    Unless alternative matching funds are secured, the reduction in the Medicaid State Share Fund will result in a reduction in Federal Funds of roughly three times the tax reduction.
    
    Additional administrative costs to the Tax Department associated with passage of this bill would be minimal.

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2005
Increase/Decrease
(use"-")
2006
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 0 0
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 0
3. Explanation of above estimates (including long-range effect):
    Passage of this bill would provide a Health Care Provider Tax credit to medical providers for their investment in electronic medical record technology without consideration of their Health Care Provider Tax liability. The Tax Department does not have access to the data necessary to calculate the revenue impact of this proposal. However, the reduction in the Medicaid State Share Fund as a result of passage of this bill could be significant.
    
    Unless alternative matching funds are secured, the reduction in the Medicaid State Share Fund will result in a reduction in Federal Funds of roughly three times the tax reduction.
    
    Additional administrative costs to the Tax Department associated with passage of this bill would be minimal.
    


Memorandum
Person submitting Fiscal Note:
Mark Muchow
Email Address:
kpetry@tax.state.wv.us
    The stated purpose of this bill is to provide a tax credit to medical providers in an amount equal to their investment in electronic medical record technology.
    
    As written, the bill provides that “the Tax Commissioner shall prescribe such regulations as necessary to carry out the purposes of this section.” Absent further guidance on legislative intent, the formulation of the required regulations will require significant Tax Department resources.