Starting Wednesday, April 1 smaller health-care providers – including skilled-nursing facilities – will start paying higher business taxes.
Sadly, this was not an April Fool’s Day joke. Health-care providers used to pay a business-tax rate of 1.5 percent. They will now pay a rate of 1.75 percent, equivalent to a 16.66 percent increase in taxes. Hospitals were exempted from the increase.
The tax increase stems from a bill I strongly opposed — Senate Bill 6492. SB 6492 was the first bill Gov. Inslee signed in the 2020 session. The new rate applies to all businesses reporting in the “service and other” business and occupation (B&O) classification that were previously subject to the 1.5 percent tax rate and gross over $1 million annually. Hospital systems and their outpatient clinics, which employ health-care providers, are exempt.
This means that all the nursing homes and independent doctors who are currently fighting on the front lines against COVID-19 will see the cost of business increase at a time when they are struggling to provide care, find personal protective equipment, and stop the spread of this virus.
This past summer, I spoke with several doctors about how this tax increase would put them at a disadvantage compared to hospital providers and would, ironically, end up costing taxpayers more while limiting care options.
You can watch some of these videos by clicking the links below:
What impact will taxing independent providers have?
How do excessive taxes and regulations affect private-practice providers?
Why are private practices important to the larger health-care system?
How does the business tax increase hurt rural patients?
How could the business tax increase cost taxpayers more for health care?
Does the business tax increase put independent providers at a competitive disadvantage?
I will urge the Governor to suspend the new tax increase during the coronavirus/COVID-19 crisis.Print This Post