The House Finance Committee met Monday morning to not only hold public hearings on a series of bills, but to also vote on whether or not to pass several bills out of executive session.
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One bill (HB 2943) would provide a business and occupation tax preference for certain behavioral health organizations. Another (HB 2901) would impose a tax on paid health insurance claims to help assist with insurance premiums. There were also several bills that sought to address homelessness and affordable housing, such as HB 2948.
House Bill 2943 would provide a B&O tax deduction for behavioral health administrative service organizations, as well as health or social welfare organizations. Organizations that provide behavioral health and substance use treatment receive government funding, including Medicaid dollars, through disbursements from behavioral health administrative services organizations (BHOs). BHOs and health or social welfare organizations previously were allowed to deduct Medicaid and government payments from the B&O tax they paid, although that option expired on Jan. 1 this year. HB 2943 would allow health and social welfare organizations to receive a B&O tax deduction on government-disbursed dollars used to provide behavioral health and substance use disorder treatments. Behavioral health organizations would also be allowed to receive the B&O tax deduction if they disburse government funds to treatment providers. The tax deduction would expire on Jan. 1, 2031. This bill passed out of executive session on Monday.
House Bill 2901 seeks to provide assistance with paying health insurance premiums by imposing a one percent tax on claims paid by health insurance carriers. The tax would be levied on health insurance carriers, third-party administrators, and companies that offer self-funded coverage. Only qualified individuals would receive the assistance provided by the tax. All taxes collected from paid claims would go to a premium assistance account, and expenditures would only be spent on the program connected to the account. Those who would benefit from the premium assistance would have to earn between 133 and 500 percent of the federal poverty level and be enrolled in a qualifying health plan through the exchange. Beneficiaries must also be ineligible for Medicare or other government medical assistance programs. The committee didn’t take action on this bill on Monday morning.
House Bill 2948 aims to solve the homelessness and affordable housing crisis in the state’s largest metropolitan areas by allowing counties with a population of at least two million, as well as cities located in those counties, to impose additional taxes that would be used to curb homelessness and expand affordable housing. Specifically, counties allowed this extra taxing authority would be authorized to impose a tax on payroll expenses. The bill would allow counties to impose a tax of 0.25 percent of an employer’s annual payroll expenses, and would have to be paid quarterly. Some types of businesses would be excluded from paying this tax, including gas stations, liquor stores or businesses that only produce alcoholic beverages, government agencies, comprehensive cancer centers, small businesses with less than 50 employees and made less than $3 million in the immediately preceding tax year. Employers who pay this tax can’t deduct it from employees’ paychecks. The committee didn’t take action on this bill on Monday morning.
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