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Committee advances GRT-deduction extension for health providers but members push for local 'hold harmless' protections
Summary
HB338 would extend the gross receipts tax deduction for health-care services to 2031 and expand it to coinsurance payments; while provider groups supported the extension, local-government witnesses warned of multi-million-dollar revenue losses and asked for a hold-harmless provision; the committee issued a due-pass-without-recommendation to allow further negotiations in the Tax committee.
The sponsor introduced House Bill 338 to extend the gross receipts tax (GRT) deduction for health-care providers through 2031 and to add coinsurance payments to the deduction. Sponsor and provider representatives said the deduction helps private practices and keeps providers in the state; they argued it lowers the effective tax…
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