AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
The percentage of physicians who accept Medicaid patients has been declining for years. A 2012 survey conducted by the Texas Medical Association showed that 31 percent of doctors accepted new Medicaid patients in 2012, compared to 67 percent in 2000. A 2014 survey of 15 large cities found that only 23 percent of DFW-area doctors accepted new Medicaid patients, compared to the national average of 46 percent. To encourage the provision of medical services to low-income persons, S.B. 1843, as the enabling legislation for S.J.R. 61, permits a county commissioners court to grant up to a 50 percent residential appraisal exemption to physicians who treat residents who are indigent or Medicaid recipients, without remuneration. The commissioners court will specify the number of residents to be treated to qualify for the exemption. That number may be expressed as a percentage of a physician's practice.
As proposed, S.B. 1843 amends current law relating to a local option exemption from ad valorem taxation by a county of a portion of the value of the residence homestead of a physician who provides health care services for which the physician agrees not to seek payment from any source, including the Medicaid program or otherwise from this state or the federal government, to indigent residents of the county.
RULEMAKING AUTHORITY
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 11.13, Tax Code, by amending Subsection (i) and adding Subsection (v), as follows:
(i) Adds a reference to Subsection (v) and makes a nonsubstantive change.
(v) Entitles a licensed physician, in addition to any other exemptions provided by this section, to an exemption from taxation by a county of a percentage, not to exceed 50 percent, of the appraised value of the physician's residence homestead if the exemption is adopted by the commissioners court of the county in the manner provided by law for official action by the commissioners court. Requires a physician, to be eligible to receive an exemption under this subsection, to provide health care services to indigent residents of the county and not seek payment for those services from any source, including the Medicaid program or otherwise from this state or the federal government. Requires the commissioners court to specify in the order adopting the exemption the number of indigent county residents to whom a physician must provide health care services during a tax year to be eligible to receive an exemption under this subsection. Authorizes the commissioners court to express the number as a percentage of the physician's total practice. Requires the commissioners court to submit to the chief appraiser a copy of the order adopting the exemption and any subsequent order adopted by the commissioners court that relates to the exemption. Authorizes the chief appraiser to require a physician seeking an exemption under this subsection to present additional information establishing eligibility for the exemption. Authorizes the commissioners court to repeal the exemption in the manner provided by law for official action by the commissioners court.
SECTION 2. Provides that this Act applies only to ad valorem taxes imposed for a tax year that begins on or after the effective date of this Act.
SECTION 3. Effective date: January 1, 2016, contingent upon approval by the voters of the constitutional amendment relating to authorizing a local option exemption from ad valorem taxation by a county of a portion of the value of the residence homestead of a physician who provides health care services for which the physician agrees not to seek payment from any source, including the Medicaid program or otherwise from this state or the federal government, to indigent residents of the county.