Vt. lawmakers reject dental provider tax

Vermont lawmakers have rejected a proposed 3% tax on dental services, according to a story in ADA News.

On May 5, state legislators reached an agreement on Gov. Peter Shumlin's proposed tax bill without the inclusion of a proposed dental services provider tax -- the so-called "tooth tax." The bill was subsequently passed by both the House and the Senate.

However, the bill does include a 0.8% tax on medical and dental providers, ADA News reported, and it also requires that the administration study and report back to the 2012 Legislature the data necessary to apply the provider tax to all health providers not currently paying the tax.

Shumlin had proposed extending the medical provider tax -- now assessed on the net revenue of hospitals, nursing homes, and managed care companies -- to include dentists and insurance companies to help address the state's $175 million budget deficit. The 3% tax on dentists' gross receipts of services would have brought in about $6 million, which subsequently would have added about $9 million from the federal government in additional Medicaid funds, according to the governor.

The Vermont State Dental Society lobbied heavily against the proposed tax, with Executive Director Peter Taylor presenting state lawmakers with more than 4,500 signatures opposing the provider tax.