HF 964

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; providing for contingent
adjustment of certain MinnesotaCare taxes; amending
Minnesota Statutes 2004, section 295.52, by adding a
subdivision.

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

Section 1.

Minnesota Statutes 2004, section 295.52, is
amended by adding a subdivision to read:

new text begin Subd. 8. new text end

new text begin Contingent elimination of tax. new text end

new text begin The commissioner
shall establish tax rates for calendar years beginning on or
after January 1, 2006, based upon determinations made by the
commissioner of finance regarding the estimated balance of the
health care access fund. The commissioner of finance shall, on
September 1 of each year, beginning September 1, 2005, determine
the estimated balance of the health care access fund in terms of
the total expenditures and the total resources available for the
fiscal year that begins the following July 1. If the
commissioner of finance determines on September 1 that for the
following fiscal year the estimated total revenue available
meets the estimated total expenditures plus an additional
$50,000,000, the taxes imposed under subdivisions 1, 1a, 2, 3,
and 4 shall be set at one percent of the gross revenues received
on or after January 1 for the calendar year that begins
immediately following that September 1. If the commissioner of
finance determines on September 1 that the total revenue
available in the fund will be less than the estimated
expenditures for the following fiscal year, then the
commissioner, in consultation with the commissioner of finance,
shall determine the amount needed to eliminate the deficit and
shall impose an increase in the taxes under subdivisions 1, 1a,
2, 3, and 4 for the calendar year that begins immediately
following that September 1. The commissioner shall determine
the rate of the tax to the nearest one-quarter of one percent
beginning at one percent and increasing the rate up to two
percent, using the lowest of the rates that the commissioner
determines will produce sufficient revenue to meet the estimated
expenditures plus an additional $50,000,000. The commissioner
shall publish in the State Register by October 1 of each year,
beginning October 1, 2005, the amount of the tax to be imposed
for the following calendar year. In determining the estimated
expenditures of the health care access fund under this
subdivision, the commissioner of finance shall include estimated
expenditures for providing covered services, including the
administration of the program and the collection of the
revenue. The commissioner of finance shall also assume an
adjustment to the aggregate cap for the limited benefits
coverage as described in section 256L.035, paragraph (b), when
determining the balance of the fund beginning on September 1,
2006, for the fiscal year beginning July 1, 2007.
new text end