Date Requested: January 31, 2015
Time Requested: 11:34 AM
Agency: Tax Department, State
CBD Number: Version: Bill Number: Resolution Number:
2734 Introduced SB386
CBD Subject: Tax


FUND(S):

Medicaid State Share Fund

Sources of Revenue:

Special Fund

Legislation creates:

Neither Program nor Fund



Fiscal Note Summary


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


    The stated purpose of this bill is to exclude mobile X-ray services from the health care provider tax.
    
    The bill adds mobile unit to the list of laboratory or X-ray services that are not included in the definition of independent laboratory or X-ray services for purposes of the Health Care Provider Tax. Under the assumption that the exemption only applies to those who fall in the category of independent laboratory or X-ray services, we would expect the exclusion not to result in a sizable reduction in revenue for the Medicaid State Share Fund. However, if the provisions were to result in any reclassification of revenues attributable to in-patient and out-patient hospital services to the independent laboratory or X-ray services category due to behavioral modification on the part of taxpayers, the revenue consequences could be more significant.
    
    There would be no additional administrative costs associated with this bill.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2015
Increase/Decrease
(use"-")
2016
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


Explanation of above estimates (including long-range effect):


    The bill adds mobile unit to the list of laboratory or X-ray services that are not included in the definition of independent laboratory or X-ray services for purposes of the Health Care Provider Tax. Under the assumption that the exemption only applies to those who fall in the category of independent laboratory or X-ray services, we would expect the exclusion not to result in a sizable reduction in revenue for the Medicaid State Share Fund. However, if the provisions were to result in any reclassification of revenues attributable to in-patient and out-patient hospital services to the independent laboratory or X-ray services category due to behavioral modification on the part of taxpayers, the revenue consequences could be more significant. In FY2014, total collections under the independent laboratory or X-ray services were slightly more than $2 million.
    
    There would be no additional administrative costs associated with this bill.
    
    



Memorandum


    



    Person submitting Fiscal Note: Mark Muchow
    Email Address: kerri.r.petry@wv.gov