Texas Comptroller Issues Memorandum on Sales and Use Taxability of Workers’ Compensation Insurance Services

The Texas Comptroller of Public Accounts Nov. 10 issued a memorandum on the sales and use taxability of doctor’s exams related to workers’ compensation, a state-regulated insurance program that pays medical bills and replaces lost wages for employees injured at work or having work-related diseases or illnesses. A memorandum dated Oct. 20 determined that charges for Designated Doctor’s Exams ordered by the Texas Department of Insurance, Division of Workers’ Compensation (TDI-DWC) are subject to sales and use tax as insurance services. That statement of policy is related to issues that the comptroller had not addressed previously. By this memorandum, the ...