Senate committee approves HB 3

The Senate Finance Committee voted on Friday, April 28, to send House Bill 3, which imposes a new tax on the gross receipts of all businesses earning more than $300,000 per year, to the Senate floor. It is likely the full Senate will pass HB 3 by week’s end and send it to Gov. Rick Perry’s desk before the end of the week.

HB 3 would place a 1-percent tax on gross receipts minus cost of goods or employee compensation for businesses earning more than $300,000 per year. Physicians would be able to deduct from their taxable income the full amount of all revenue from Medicaid, CHIP, Medicare, worker’s compensation, the County Indigent Health Care Program and military insurance programs plus the cost any uncompensated charity care they provide.