HF 4217

as introduced - 91st Legislature (2019 - 2020) Posted on 03/05/2020 01:39pm

A bill for an act
relating to state government; repealing certain provider taxes; repealing Minnesota
Statutes 2019 Supplement, section 295.52, subdivisions 1, 1a, 2, 3, 4, 8.

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

Section 1. new text begin REPEALER; PROVIDER TAX.
new text end

new text begin Minnesota Statutes 2019 Supplement, section 295.52, subdivisions 1, 1a, 2, 3, 4, and 8, new text end new text begin
are repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: 20-7791

295.52 TAXES IMPOSED.

Subdivision 1.

Hospital tax.

A tax is imposed on each hospital equal to 1.8 percent of its gross revenues.

Subd. 1a.

Surgical center tax.

A tax is imposed on each surgical center equal to 1.8 percent of its gross revenues.

Subd. 2.

Provider tax.

A tax is imposed on each health care provider equal to 1.8 percent of its gross revenues.

Subd. 3.

Wholesale drug distributor tax.

A tax is imposed on each wholesale drug distributor equal to 1.8 percent of its gross revenues.

Subd. 4.

Use tax; legend drugs.

(a) A person that receives legend drugs for resale or use in Minnesota, other than from a wholesale drug distributor that is subject to tax under subdivision 3, is subject to a tax equal to the price paid for the legend drugs multiplied by 1.8 percent. Liability for the tax is incurred when legend drugs are received or delivered in Minnesota by the person.

(b) A tax imposed under this subdivision does not apply to purchases by an individual for personal consumption.

Subd. 8.

Contingent reduction in tax rate.

(a) By December 1 of each year, beginning in 2011, the commissioner of management and budget shall determine the projected balance in the health care access fund for the biennium.

(b) If the commissioner of management and budget determines that the projected balance in the health care access fund for the biennium reflects a ratio of revenues to expenditures and transfers greater than 125 percent, and if the actual cash balance in the fund is adequate, as determined by the commissioner of management and budget, the commissioner, in consultation with the commissioner of revenue, shall reduce the tax rates levied under subdivisions 1, 1a, 2, 3, and 4, for the subsequent calendar year sufficient to reduce the structural balance in the fund. The rate may be reduced to the extent that the projected revenues for the biennium do not exceed 125 percent of expenditures and transfers. The new rate shall be rounded to the nearest one-tenth of one percent. The rate reduction under this paragraph expires at the end of each calendar year and is subject to an annual redetermination by the commissioner of management and budget.

(c) For purposes of the analysis defined in paragraph (b), the commissioner of management and budget shall include projected revenues.