Designated Doctor Sales Tax Requirement Delayed

The Texas Department of Insurance, Division of Workers’ Compensation (DWC) sent out a memo that the designated doctor sales tax requirement is delayed.

On October 20, 2022, the Texas Comptroller of Public Accounts (Comptroller) issued Private Letter Ruling No. PLR20220516113922 (STAR Accession No. 202210014L). The ruling states that charges for designated doctor exams performed under Texas Labor Code Section 408.0041 are subject to Texas sales and use tax under Texas Tax Code Sections 151.010, 151.0101(a)(9), and 151.051; and 34 Texas Administrative Code Section 3.355(b).

On November 10, 2022, the Comptroller issued a memo delaying implementation of the guidance provided in that private letter ruling until after the 2023 legislative session to allow the DWC and workers’ compensation system participants time to seek a legislative change. The memo also states that designated doctors are not required to collect tax on charges for exams at this time.

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