SF 384

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; exempting certain payments from 
  1.3             the MinnesotaCare tax; amending Minnesota Statutes 
  1.4             2000, section 295.53, subdivision 1. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 2000, section 295.53, 
  1.7   subdivision 1, is amended to read: 
  1.8      Subdivision 1.  [EXEMPTIONS.] (a) The following payments 
  1.9   are excluded from the gross revenues subject to the hospital, 
  1.10  surgical center, or health care provider taxes under sections 
  1.11  295.50 to 295.57: 
  1.12     (1) payments received for services provided under the 
  1.13  Medicare program, including payments received from the 
  1.14  government, and organizations governed by sections 1833 and 1876 
  1.15  of title XVIII of the federal Social Security Act, United States 
  1.16  Code, title 42, section 1395, and enrollee deductibles, 
  1.17  coinsurance, and copayments, whether paid by the Medicare 
  1.18  enrollee or by a Medicare supplemental coverage as defined in 
  1.19  section 62A.011, subdivision 3, clause (10).  Payments for 
  1.20  services not covered by Medicare are taxable; 
  1.21     (2) medical assistance payments including payments received 
  1.22  directly from the government or from a prepaid plan; 
  1.23     (3) payments received for home health care services; 
  1.24     (4) payments received from hospitals or surgical centers 
  1.25  for goods and services on which liability for tax is imposed 
  2.1   under section 295.52 or the source of funds for the payment is 
  2.2   exempt under clause (1), (2), (7), (8), (10), (13), or (20); 
  2.3      (5) payments received from health care providers for goods 
  2.4   and services on which liability for tax is imposed under this 
  2.5   chapter or the source of funds for the payment is exempt under 
  2.6   clause (1), (2), (7), (8), (10), (13), or (20); 
  2.7      (6) amounts paid for legend drugs, other than nutritional 
  2.8   products, to a wholesale drug distributor who is subject to tax 
  2.9   under section 295.52, subdivision 3, reduced by reimbursements 
  2.10  received for legend drugs under clauses (1), (2), (7), and (8); 
  2.11     (7) payments received under the general assistance medical 
  2.12  care program including payments received directly from the 
  2.13  government or from a prepaid plan; 
  2.14     (8) payments received for providing services under the 
  2.15  MinnesotaCare program including payments received directly from 
  2.16  the government or from a prepaid plan and enrollee deductibles, 
  2.17  coinsurance, and copayments.  For purposes of this clause, 
  2.18  coinsurance means the portion of payment that the enrollee is 
  2.19  required to pay for the covered service; 
  2.20     (9) payments received by a health care provider or the 
  2.21  wholly owned subsidiary of a health care provider for care 
  2.22  provided outside Minnesota; 
  2.23     (10) payments received from the chemical dependency fund 
  2.24  under chapter 254B; 
  2.25     (11) payments received in the nature of charitable 
  2.26  donations that are not designated for providing patient services 
  2.27  to a specific individual or group; 
  2.28     (12) payments received for providing patient services 
  2.29  incurred through a formal program of health care research 
  2.30  conducted in conformity with federal regulations governing 
  2.31  research on human subjects.  Payments received from patients or 
  2.32  from other persons paying on behalf of the patients are subject 
  2.33  to tax; 
  2.34     (13) payments received from any governmental agency for 
  2.35  services benefiting the public, not including payments made by 
  2.36  the government in its capacity as an employer or insurer; 
  3.1      (14) payments received for services provided by community 
  3.2   residential mental health facilities licensed under Minnesota 
  3.3   Rules, parts 9520.0500 to 9520.0690, community support programs 
  3.4   and family community support programs approved under Minnesota 
  3.5   Rules, parts 9535.1700 to 9535.1760, and community mental health 
  3.6   centers as defined in section 245.62, subdivision 2; 
  3.7      (15) government payments received by a regional treatment 
  3.8   center; 
  3.9      (16) payments received for hospice care services; 
  3.10     (17) payments received by a health care provider for 
  3.11  hearing aids and related equipment or prescription eyewear 
  3.12  delivered outside of Minnesota; 
  3.13     (18) payments received by an educational institution from 
  3.14  student tuition, student activity fees, health care service 
  3.15  fees, government appropriations, donations, or grants.  Fee for 
  3.16  service payments and payments for extended coverage are taxable; 
  3.17     (19) payments received for services provided by:  assisted 
  3.18  living programs and congregate housing programs; and 
  3.19     (20) payments received under the federal Employees Health 
  3.20  Benefits Act, United States Code, title 5, section 8909(f), as 
  3.21  amended by the Omnibus Reconciliation Act of 1990; and 
  3.22     (21) payments received directly from a patient or consumer 
  3.23  for patient services where there is no reimbursement from a 
  3.24  third-party purchaser.  This exemption does not apply to 
  3.25  co-payments, deductibles, or coinsurance paid by the patient or 
  3.26  consumer in accordance with a third-party contract or to 
  3.27  premiums paid by an enrollee to a staff model health plan 
  3.28  company. 
  3.29     (b) Payments received by wholesale drug distributors for 
  3.30  legend drugs sold directly to veterinarians or veterinary bulk 
  3.31  purchasing organizations are excluded from the gross revenues 
  3.32  subject to the wholesale drug distributor tax under sections 
  3.33  295.50 to 295.59. 
  3.34     Sec. 2.  [EFFECTIVE DATE.] 
  3.35     Section 1 is effective for payments received for patient 
  3.36  services provided on or after January 1, 2002.