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