Bill Text: MN HF77 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Gross revenue payment exemptions provided for hospital, surgical center, or health care provider taxes.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2013-01-14 - Introduction and first reading, referred to Health and Human Services Finance [HF77 Detail]
Download: Minnesota-2013-HF77-Introduced.html
1.2relating to taxation; gross revenues; exempting certain payments;amending
1.3Minnesota Statutes 2012, section 295.53, subdivision 1.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2012, section 295.53, subdivision 1, is amended to read:
1.6 Subdivision 1. Exemptions. (a) The following payments are excluded from the
1.7gross revenues subject to the hospital, surgical center, or health care provider taxes under
1.8sections295.50 to
295.59 :
1.9(1) payments received for services provided under the Medicare program, including
1.10payments received from the government, and organizations governed by sections 1833
1.11and 1876 of title XVIII of the federal Social Security Act, United States Code, title 42,
1.12section 1395, and enrollee deductibles, coinsurance, and co-payments, whether paid by the
1.13Medicare enrollee or by a Medicare supplemental coverage as defined in section62A.011,
1.14subdivision 3 , clause (10), or by Medicaid payments under title XIX of the federal Social
1.15Security Act. Payments for services not covered by Medicare are taxable;
1.16(2) payments received for home health care services;
1.17(3) payments received from hospitals or surgical centers for goods and services on
1.18which liability for tax is imposed under section295.52 or the source of funds for the
1.19payment is exempt under clause (1), (7), (10), or (14);
1.20(4) payments received from health care providers for goods and services on which
1.21liability for tax is imposed under this chapter or the source of funds for the payment is
1.22exempt under clause (1), (7), (10), or (14);
1.23(5) amounts paid for legend drugs, other than nutritional products and blood and
1.24blood components, to a wholesale drug distributor who is subject to tax under section
2.1295.52, subdivision 3
, reduced by reimbursements received for legend drugs otherwise
2.2exempt under this chapter;
2.3(6) payments received by a health care provider or the wholly owned subsidiary of a
2.4health care provider for care provided outside Minnesota;
2.5(7) payments received from the chemical dependency fund under chapter 254B;
2.6(8) payments received in the nature of charitable donations that are not designated
2.7for providing patient services to a specific individual or group;
2.8(9) payments received for providing patient services incurred through a formal
2.9program of health care research conducted in conformity with federal regulations
2.10governing research on human subjects. Payments received from patients or from other
2.11persons paying on behalf of the patients are subject to tax;
2.12(10) payments received from any governmental agency for services benefiting the
2.13public, not including payments made by the government in its capacity as an employer
2.14or insurer or payments made by the government for services provided under general
2.15assistance medical care, the MinnesotaCare program, or the medical assistance program
2.16governed by title XIX of the federal Social Security Act, United States Code, title 42,
2.17sections 1396 to 1396v;
2.18(11) government payments received by the commissioner of human services for
2.19state-operated services;
2.20(12) payments received by a health care provider for hearing aids and related
2.21equipment or prescription eyewear delivered outside of Minnesota;
2.22(13) payments received by an educational institution from student tuition, student
2.23activity fees, health care service fees, government appropriations, donations, or grants,
2.24and for services identified in and provided under an individualized education program
2.25as defined in section256B.0625 or Code of Federal Regulations, chapter 34, section
2.26300.340(a). Fee for service payments and payments for extended coverage are taxable;
2.27(14) payments received under the federal Employees Health Benefits Act, United
2.28States Code, title 5, section 8909(f), as amended by the Omnibus Reconciliation Act of
2.291990. Enrollee deductibles, coinsurance, and co-payments are subject to tax;and
2.30(15) payments received under the federal Tricare program, Code of Federal
2.31Regulations, title 32, section 199.17(a)(7). Enrollee deductibles, coinsurance, and
2.32co-payments are subject to tax.; and
2.33(16) payments for patient services provided in this state received by an entity
2.34subject to the tax imposed under section 295.52, if 60 percent or more of the entity's
2.35gross revenues for patient services provided in this state are paid from sources domiciled
3.1outside the state. For purposes of this clause, payments are deemed to be paid from the
3.2domiciliary of the patient receiving the services.
3.3(b) Payments received by wholesale drug distributors for legend drugs sold directly
3.4to veterinarians or veterinary bulk purchasing organizations are excluded from the gross
3.5revenues subject to the wholesale drug distributor tax under sections295.50 to
295.59 .
3.6EFFECTIVE DATE.This section is effective for gross revenues received after
3.7June 30, 2013.
1.3Minnesota Statutes 2012, section 295.53, subdivision 1.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2012, section 295.53, subdivision 1, is amended to read:
1.6 Subdivision 1. Exemptions. (a) The following payments are excluded from the
1.7gross revenues subject to the hospital, surgical center, or health care provider taxes under
1.8sections
1.9(1) payments received for services provided under the Medicare program, including
1.10payments received from the government, and organizations governed by sections 1833
1.11and 1876 of title XVIII of the federal Social Security Act, United States Code, title 42,
1.12section 1395, and enrollee deductibles, coinsurance, and co-payments, whether paid by the
1.13Medicare enrollee or by a Medicare supplemental coverage as defined in section
1.14subdivision 3
1.15Security Act. Payments for services not covered by Medicare are taxable;
1.16(2) payments received for home health care services;
1.17(3) payments received from hospitals or surgical centers for goods and services on
1.18which liability for tax is imposed under section
1.19payment is exempt under clause (1), (7), (10), or (14);
1.20(4) payments received from health care providers for goods and services on which
1.21liability for tax is imposed under this chapter or the source of funds for the payment is
1.22exempt under clause (1), (7), (10), or (14);
1.23(5) amounts paid for legend drugs, other than nutritional products and blood and
1.24blood components, to a wholesale drug distributor who is subject to tax under section
2.2exempt under this chapter;
2.3(6) payments received by a health care provider or the wholly owned subsidiary of a
2.4health care provider for care provided outside Minnesota;
2.5(7) payments received from the chemical dependency fund under chapter 254B;
2.6(8) payments received in the nature of charitable donations that are not designated
2.7for providing patient services to a specific individual or group;
2.8(9) payments received for providing patient services incurred through a formal
2.9program of health care research conducted in conformity with federal regulations
2.10governing research on human subjects. Payments received from patients or from other
2.11persons paying on behalf of the patients are subject to tax;
2.12(10) payments received from any governmental agency for services benefiting the
2.13public, not including payments made by the government in its capacity as an employer
2.14or insurer or payments made by the government for services provided under general
2.15assistance medical care, the MinnesotaCare program, or the medical assistance program
2.16governed by title XIX of the federal Social Security Act, United States Code, title 42,
2.17sections 1396 to 1396v;
2.18(11) government payments received by the commissioner of human services for
2.19state-operated services;
2.20(12) payments received by a health care provider for hearing aids and related
2.21equipment or prescription eyewear delivered outside of Minnesota;
2.22(13) payments received by an educational institution from student tuition, student
2.23activity fees, health care service fees, government appropriations, donations, or grants,
2.24and for services identified in and provided under an individualized education program
2.25as defined in section
2.26300.340(a). Fee for service payments and payments for extended coverage are taxable;
2.27(14) payments received under the federal Employees Health Benefits Act, United
2.28States Code, title 5, section 8909(f), as amended by the Omnibus Reconciliation Act of
2.291990. Enrollee deductibles, coinsurance, and co-payments are subject to tax;
2.30(15) payments received under the federal Tricare program, Code of Federal
2.31Regulations, title 32, section 199.17(a)(7). Enrollee deductibles, coinsurance, and
2.32co-payments are subject to tax
2.33(16) payments for patient services provided in this state received by an entity
2.34subject to the tax imposed under section 295.52, if 60 percent or more of the entity's
2.35gross revenues for patient services provided in this state are paid from sources domiciled
3.1outside the state. For purposes of this clause, payments are deemed to be paid from the
3.2domiciliary of the patient receiving the services.
3.3(b) Payments received by wholesale drug distributors for legend drugs sold directly
3.4to veterinarians or veterinary bulk purchasing organizations are excluded from the gross
3.5revenues subject to the wholesale drug distributor tax under sections
3.6EFFECTIVE DATE.This section is effective for gross revenues received after
3.7June 30, 2013.
