FISCAL NOTE
Date Requested: February 08, 2017 Time Requested: 06:40 PM |
Agency: |
Tax & Revenue Department, WV State |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
1085 |
Introduced |
SB46 |
|
CBD Subject: |
Taxation |
---|
|
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 and based on available information, the loss in revenue from Health Care Provider Tax would be roughly $120,000 per year to the State Medicaid Share Fund. Absent replacement funding for the State Medicaid program, the total funding decrease including federal funds would be nearly $0.5 million per year. 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.
Additional administrative costs associated with this bill would be $1,500 in FY2018.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2017 Increase/Decrease (use"-") |
2018 Increase/Decrease (use"-") |
Fiscal Year (Upon Full Implementation) |
1. Estmated Total Cost |
0 |
1,000 |
0 |
Personal Services |
0 |
500 |
0 |
Current Expenses |
0 |
0 |
0 |
Repairs and Alterations |
0 |
0 |
0 |
Assets |
0 |
0 |
0 |
Other |
0 |
500 |
0 |
2. Estimated Total Revenues |
0 |
-500,000 |
-500,000 |
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 and based on available information, the loss in revenue from Health Care Provider Tax would be roughly $120,000 per year to the State Medicaid Share Fund. Absent replacement funding for the State Medicaid program, the total funding decrease including federal funds would be nearly $0.5 million per year. 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.
Additional administrative costs associated with this bill would be $1,500 in FY2018.
Memorandum
Person submitting Fiscal Note: Mark Muchow
Email Address: kerri.r.petry@wv.gov