HF 1584

1st Engrossment - 87th Legislature (2011 - 2012) Posted on 05/02/2011 03:09pm

A bill for an act
relating to taxation; providing for a contingent reduction in the MinnesotaCare
provider tax; amending Minnesota Statutes 2010, sections 295.52, by adding a
subdivision; 297I.05, subdivision 5.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2010, section 295.52, is amended by adding a
subdivision to read:

new text begin Subd. 8. new text end

new text begin Contingent reduction in tax rate. new text end

new text begin (a) On July 1 of each year, beginning
July 1, 2011, the commissioner of management and budget shall determine the projected
revenues and expenditures from the health care access fund for the tax year beginning
the following January 1, based on the most recent February forecast and any legislative
session changes.
new text end

new text begin (b) If the commissioner of management and budget determines that the projected
revenues for the following tax year plus any projected balance from the previous June
30 exceed 125 percent of the projected health care access fund expenditures for the
following tax year, then the commissioner of management and budget, in consultation
with the commissioner of revenue, shall reduce the tax rates for the taxes levied under
subdivisions 1, 1a, 2, 3, and 4, effective on January 1 of the following tax year, so that
projected revenues in the following tax year plus any projected balance from the previous
June 30 equal 125 percent of projected expenditures.
new text end

new text begin (c) The dollar value of the rate reduction in paragraph (b) must be proportional to the
share of total health care access fund revenue raised by the taxes levied under subdivisions
1, 1a, 2, 3, and 4, and the commissioner of management and budget shall coordinate this
rate reduction with the rate reduction authorized in section 297I.05, subdivision 5.
new text end

Sec. 2.

Minnesota Statutes 2010, section 297I.05, subdivision 5, is amended to read:

Subd. 5.

Health maintenance organizations, nonprofit health service plan
corporations, and community integrated service networks.

(a) A tax is imposed on
health maintenance organizations, community integrated service networks, and nonprofit
health care service plan corporations. The rate of tax is equal to one percent of gross
premiums less return premiums on all direct business received by the organization,
network, or corporation or its agents in Minnesota, in cash or otherwise, in the calendar
year.

(b) The commissioner shall deposit all revenues, including penalties and interest,
collected under this chapter from health maintenance organizations, community integrated
service networks, and nonprofit health service plan corporations in the health care access
fund. Refunds of overpayments of tax imposed by this subdivision must be paid from
the health care access fund. There is annually appropriated from the health care access
fund to the commissioner the amount necessary to make any refunds of the tax imposed
under this subdivision.

new text begin (c) On July 1 of each year, beginning July 1, 2011, the commissioner of management
and budget shall determine the projected revenues and expenditures from the health care
access fund for the tax year beginning the following January 1, based on the most recent
February forecast and any legislative session changes.
new text end

new text begin (d) If the commissioner of management and budget determines that the projected
revenues for the following tax year plus any projected balance from the previous June 30
exceed 125 percent of the projected health care access fund expenditures for the following
tax year, then the commissioner of management and budget, in consultation with the
commissioner of revenue, shall reduce the tax rate for the tax levied under paragraph
(a), effective on January 1 of the following tax year, so that projected revenues in the
following tax year plus any projected balance from the previous June 30 equal 125 percent
of projected expenditures.
new text end

new text begin (e) The dollar value of the rate reduction in paragraph (d) must be proportional to the
share of total health care access fund revenue raised by the tax levied under paragraph (a),
and the commissioner of management and budget shall coordinate this rate reduction with
the rate reduction authorized in section 295.52, subdivision 8.
new text end