SF 4194
Introduction - 94th Legislature (2025 - 2026)
Posted on 03/24/2026 10:40 a.m.
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A bill for an act
relating to taxation; gross receipts tax on hospitals and health care providers;
excluding licensed chiropractors from the providers subject to the tax; amending
Minnesota Statutes 2024, section 295.50, subdivision 4.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2024, section 295.50, subdivision 4, is amended to read:
Subd. 4.
Health care provider.
(a) "Health care provider" means:
(1) a person whose health care occupation is regulated or required to be regulated by
the state of Minnesota furnishing any or all of the following goods or services directly to a
patient or consumer: medical, surgical, optical, visual, dental, hearing, nursing services,
drugs, laboratory, diagnostic or therapeutic services;
(2) a person who provides goods and services not listed in clause (1) that qualify for
reimbursement under the medical assistance program provided under chapter 256B;
(3) a staff model health plan company;
(4) an ambulance service required to be licensed;
(5) a person who sells or repairs hearing aids and related equipment or prescription
eyewear; or
(6) a person providing patient services, who does not otherwise meet the definition of
health care provider and is not specifically excluded in deleted text begin clausedeleted text end new text begin paragraphnew text end (b), who employs
or contracts with a health care provider as defined in clauses (1) to (5) to perform, supervise,
otherwise oversee, or consult with regarding patient services.
(b) Health care provider does not include:
(1) hospitals; medical supplies distributors, except as specified under paragraph (a),
clause (5); nursing homes licensed under chapter 144A or licensed in any other jurisdiction;
wholesale drug distributors; pharmacies; surgical centers; bus and taxicab transportation,
or any other providers of transportation services other than ambulance services required to
be licensed; supervised living facilities for persons with developmental disabilities, licensed
under Minnesota Rules, parts 4665.0100 to 4665.9900; housing with services establishments
required to be registered under chapter 144D; board and lodging establishments providing
only custodial services that are licensed under chapter 157 and registered under section
157.17 to provide supportive services or health supervision services; adult foster homes as
defined in Minnesota Rules, part 9555.5105; day training and habilitation services for adults
with developmental disabilities as defined in section 252.41, subdivision 3; boarding care
homes, as defined in Minnesota Rules, part 4655.0100; and adult day care centers as defined
in Minnesota Rules, part 9555.9600;
(2) home health agencies as defined in Minnesota Rules, part 9505.0175, subpart 15; a
person providing personal care services and supervision of personal care services as defined
in Minnesota Rules, part 9505.0335; a person providing home care nursing services as
defined in Minnesota Rules, part 9505.0360; and home care providers required to be licensed
under chapter 144A for home care services provided under chapter 144A;
(3) a person who employs health care providers solely for the purpose of providing
patient services to its employees;
(4) an educational institution that employs health care providers solely for the purpose
of providing patient services to its students if the institution does not receive fee for service
payments or payments for extended coverage; deleted text begin and
deleted text end
(5) a person who receives all payments for patient services from health care providers,
surgical centers, or hospitals for goods and services that are taxable to the paying health
care providers, surgical centers, or hospitals, as provided under section 295.53, subdivision
1, paragraph (b), clause (3) or (4), or from a source of funds that is excluded or exempt from
tax under sections 295.50 to 295.59deleted text begin .deleted text end new text begin ; and
new text end
new text begin
(6) a person licensed under sections 148.01 to 148.108.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for gross revenues received after
December 31, 2026.
new text end