Texas Sales Tax Legislative Update - Sales Tax Specialists of Texas
                     TEXAS SALES TAX 
LEGISLATIVE UPDATE
MEDICAL AND DENTAL BILLING SERVICES
salestaxtexas.co
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INTRODUCTION
When the Texas Legislature took up 
the issue in their current session, 
they affirmatively decided these 
billing services would not be subject 
to Texas sales tax.
HISTORY: 
WHO IS 
DOING 
THE WORK
The knowledge required by the service provider 
performing medical bi l l ing services – coding, 
verifi cation of insurance eligibil ity, and claims 
preparation – elevates this service to a higher 
technical level than data processing, making it 
nontaxable.
RECENT FAVOR OF 
DEVELOPMENTS TAXPAYERS
HB 1445 amended Tex. Tax Code 
Interestingly, the 
Ann. Sec. 151.0035 (b) to exclude 
policy shift did 
from insurance services a “medical 
not indicate 
or dental bil l ing service performed 
these services 
before the original submission of: (A) 
would be treated 
a medical or dental insurance claim 
as taxable data 
related to health or dental coverage; 
processing 
or (B) a claim related to health or 
services (l ike 
dental coverage made to a medical 
other bil l ing 
assistance program funded by the 
services). They 
federal government, a state 
would be 
government, or both.
considered 
taxable insurance 
services. 
CONTACT US
(972) 422-4530
[email protected]
https://salestaxtexas.com
P.O. Box 941066, Plano, Murphy 
TX 75094