Texas Comptroller Glenn Hegar announced last week that he will delay the implementation of a sales tax on medical billing services until the Texas Legislature considers the proposed change when it meets in a regular session in 2021. The Comptroller’s staff will work with industry leaders leading up to the 140-day session in order to develop language that could amend the state’s sales tax statutes. The regular session of the Texas Legislature is scheduled to begin January 12, 2021, and end June 1, 2021.

Our prior article discussed the Texas Comptroller’s policy change in the fourth quarter of 2019, which would have rendered medical billing services subject to Texas sales tax, after longstanding reliance on rulings which exempted such services.

The Texas Comptroller subsequently delayed applicability of this policy from January 1, 2020 to April 1, 2020. Following additional comments and review, the Texas Comptroller has decided to delay the policy even further. The policy will still take effect on October 1, 2021 if a legislative change is not enacted during the session.