Texas Comptroller Don Huffines announced a proposed rule change to eliminate the sales tax charged on accessing medical records. Under current Texas law, physicians and hospitals pay sales tax on fees to retrieve patient medical records online—a cost that drives up healthcare expenses.
The proposed amendment to Rule 3.342, which governs the taxation of information services, will be published in the Texas Register on Friday, Oct. 30, followed by a 30-day public comment period. The change would end taxes on electronic health record systems, electronic medical record systems, patient portals, and similar healthcare technology used to maintain, access, or share medical records.
The current tax was established under previous leadership of the Comptroller's office. Huffines issued an executive order earlier this month directing his agency to propose the amendment.
"A tax that quietly penalizes people for accessing their own medical information has no place in our system," Huffines said.