Texas Comptroller Don Huffines signed an executive order to end sales tax on electronic health records systems, patient portals, and other technology used to access and share medical records.
The rule change addresses a taxation standard that had been applied to healthcare technology systems. Doctors had been charged sales tax when accessing electronic medical records of their patients, according to the Comptroller's office.
The Texas Legislature did not intend to tax these systems when it originally wrote the relevant tax rules, Huffines said. "When the Legislature wrote these rules, doctors' offices weren't running cloud-based record systems and patients weren't logging into portals," he said.
Under the new rule, electronic health record systems, electronic medical record systems, patient portals, and other healthcare technology used to maintain, access, or share medical records are no longer classified as taxable information services or data processing services.
The Comptroller's office will publish a proposed amendment to Rule 3.342 in the Texas Register, followed by a 30-day public comment period for public feedback.