Georgia House Passes Hospital Tax and Fee Increases

Georgia House Passes Hospital Tax and Fee Increases

This afternoon, the Georgia House of Representatives approved two bills that will raise revenue to help offset the state’s budget shortfall.

The first raises user fees for some state services like custom license plates, and is projected to bring in at least $90 million. The second creates a 1.45% tax on most hospital revenues.

Hospitals initially opposed the tax, but decided to support it after Governor Perdue threatened to cut Medicaid reimbursement rates by more than 10% and eliminate the sales tax exemption for non-profit hospitals instead.

The nearly $170 million raised by the tax will likely help fill the gaping hole in the state’s Medicaid budget.

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