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SF 841

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.
Version List Authors and Status
Rtf

Current Version - as introduced

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A bill for an act
 relating to human services; repealing the nursing home surcharge; establishing
a gross receipts tax on lodging and related services; reducing nursing facility
reimbursement rates; amending Minnesota Statutes 2006, sections 256.9657,
subdivision 4; 256B.431, subdivisions 37, 38; 256B.441, subdivision 13;
proposing coding for new law in Minnesota Statutes, chapter 295; repealing
Minnesota Statutes 2006, section 256.9657, subdivisions 1, 1a.

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

Section 1.

Minnesota Statutes 2006, section 256.9657, subdivision 4, is amended to
read:


Subd. 4.

Payments into the account.

(a) Payments to the commissioner under
subdivisions deleted text begin 1 todeleted text end new text begin 2 andnew text end 3 must be paid in monthly installments due on the 15th of the
month deleted text begin beginning October 15, 1992deleted text end . The monthly payment must be equal to the annual
surcharge divided by 12. deleted text begin Payments to the commissioner under subdivisions 2 and 3 for
fiscal year 1993 must be based on calendar year 1990 revenues. Effective July 1 of each
year, beginning in 1993, payments under subdivisions 2 and 3 must be based on revenues
earned in the second previous calendar year.
deleted text end

(b) Effective deleted text begin October 1, 1995, anddeleted text end each October 1 deleted text begin thereafterdeleted text end , the payments in
subdivisions 2 and 3 must be based on revenues earned in the previous calendar year.

(c) If the commissioner of health does not provide by August 15 of any year data
needed to update the base year for the hospital and health maintenance organization
surcharges, the commissioner of human services may estimate base year revenue and
use that estimate for the purposes of this section until actual data is provided by the
commissioner of health.

(d) Payments to the commissioner under subdivision 3a must be paid in monthly
installments due on the 15th of the month deleted text begin beginning July 15, 2003deleted text end . The monthly payment
must be equal to the annual surcharge divided by 12.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007.
 new text end

Sec. 2.

Minnesota Statutes 2006, section 256B.431, subdivision 37, is amended to read:


Subd. 37.

Nursing home rate increases effective July 1, 2002.

For rate
years beginning on or after July 1, 2002,new text begin to the rate period ending May 31, 2007,new text end the
commissioner shall provide to each nursing home reimbursed under this section or section
256B.434 an increase in each case mix payment rate equal to the increase in the per-bed
surcharge paid under section 256.9657, subdivision 1, paragraph (c), divided by 365 and
further divided by .80. The increase under this subdivision shall be added following the
determination of the payment rate for the home under this chapter. The increase shall not
be subject to any annual percentage increase.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective May 31, 2007.
 new text end

Sec. 3.

Minnesota Statutes 2006, section 256B.431, subdivision 38, is amended to read:


Subd. 38.

Nursing home rate increases effective in fiscal year 2003.

new text begin (a)
new text end Effective June 1, 2003,new text begin to May 31, 2007,new text end the commissioner shall provide to each nursing
home reimbursed under this section or section 256B.434, an increase in each case mix
payment rate equal to the increase in the per-bed surcharge paid under section 256.9657,
subdivision 1, paragraph (d), divided by 365 and further divided by .90. The increase shall
not be subject to any annual percentage increase. The 30-day advance notice requirement
in section 256B.47, subdivision 2, shall not apply to rate increases resulting from this
section. The commissioner shall not adjust the rate increase under this subdivision unless
the adjustment is greater than 1.5 percent of the monthly surcharge payment amount under
section 256.9657, subdivision 4.

new text begin (b) For the rate period beginning June 1, 2007, and for the rate year beginning
October 1, 2007, the commissioner shall reduce the total operating payment rate for each
facility reimbursed under this section or section 256B.434 by $1.90, to offset other rate
increases related to the nursing home surcharge.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective May 31, 2007.
 new text end

Sec. 4.

Minnesota Statutes 2006, section 256B.441, subdivision 13, is amended to read:


Subd. 13.

External fixed costs category.

"External fixed costs category" means
deleted text begin costs related to the nursing home surcharge under section 256.9657, subdivision 1;deleted text end
licensure fees under section 144.122; long-term care consultation fees under section
256B.0911, subdivision 6; family advisory council fee under section 144A.33;
scholarships under section 256B.431, subdivision 36; planned closure rate adjustments
under section 256B.437; property taxes and property insurance; and PERA.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007.
 new text end

Sec. 5.

new text begin [295.80] HOTELS AND LODGING FACILITIES GROSS RECEIPTS
TAX.
 new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms
have the meanings given.
 new text end

new text begin (b) "Commissioner" means the commissioner of revenue.
 new text end

new text begin (c) "Gross receipts" means the total amount received, in money or by barter or
exchange, for all sales of lodging and related services, but does not include any taxes
imposed directly on the consumer that are separately stated on the invoice, bill of sale, or
similar document given to the purchaser.
new text end

new text begin (d) "Lodging and related services provider" means an entity taxable under section
297A.61, subdivision 3, paragraph (g), clause (2).
 new text end

new text begin (e) "Sale" has the meaning given in section 297A.61, subdivision 3, paragraph
(g), clause (2).
 new text end

new text begin Subd. 2. new text end

new text begin Gross receipts tax imposed. new text end

new text begin Sales of lodging and related services taxable
under section 297A.61, subdivision 3, paragraph (g), clause (2), are subject to a tax of 4.5
percent of gross revenues derived from the sale.
 new text end

new text begin Subd. 3. new text end

new text begin Tax collection required. new text end

new text begin A lodging and related services provider is
required to collect the tax imposed under subdivision 2 from the purchaser of the lodging
and related services and give the purchaser a receipt for the tax paid. The tax collected
must be remitted to the commissioner in the same manner prescribed for the taxes imposed
under chapter 297A.
 new text end

new text begin Subd. 4. new text end

new text begin Exemptions. new text end

new text begin All of the exemptions applicable to the taxes imposed under
chapter 297A are applicable to the taxes imposed under this section.
 new text end

new text begin Subd. 5. new text end

new text begin Payment; reporting. new text end

new text begin A lodging and related services provider shall report
the tax on a return prescribed by the commissioner of revenue, and shall remit the tax with
the return. The return and the tax must be filed and paid using the filing cycle and due
dates provided for taxes imposed under chapter 297A.
 new text end

new text begin Subd. 6. new text end

new text begin Administration. new text end

new text begin Unless specifically provided otherwise by this section,
the audit, assessment, refund, penalty, interest, enforcement, collection remedies, appeal,
and administrative provisions of chapters 270 and 289A that are applicable to taxes
imposed under chapter 297A apply to taxes imposed under this section.
 new text end

new text begin Subd. 7. new text end

new text begin Interest on overpayments. new text end

new text begin Interest must be paid on an overpayment
refunded or credited to the taxpayer from the date of payment of the tax until the date the
refund is paid or credited. For purposes of this subdivision, the date of payment is the due
date of the return or the date of actual payment of the tax, whichever is later.
 new text end

new text begin Subd. 8. new text end

new text begin Deposit of revenues. new text end

new text begin The commissioner shall deposit all revenues,
including penalties and interest, derived from the tax imposed by this section in the
general fund.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 1, 2007.
 new text end

Sec. 6. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, section 256.9657, subdivisions 1 and 1a, new text end new text begin is repealed.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007.
 new text end