This bill amends existing taxation laws to provide various deductions related to gross receipts for health care services and medical supplies. It introduces a new section that allows health care practitioners to deduct receipts from the sale of medical equipment, supplies, and drugs, provided these items are regularly used in their practice. Additionally, it extends the gross receipts tax deduction to include payments made by patients for health care services not covered by managed care organizations or health care insurers, while explicitly excluding services provided to Medicaid patients. The bill also removes the sunset date for deductions related to copayments or deductibles paid by insured individuals.

Furthermore, the bill mandates that health care providers receiving Medicaid reimbursement will be compensated for all applicable gross receipts taxes they are required to pay. It establishes reporting requirements for taxpayers claiming these deductions and ensures that the deductions are included in the tax expenditure budget for evaluation purposes. The effective date for these provisions is set for July 1, 2025.

Statutes affected:
introduced version: 7-9-93