2007 Minnesota Statutes

295.52 TAXES IMPOSED.
    Subdivision 1. Hospital tax. A tax is imposed on each hospital equal to two percent of its
gross revenues.
    Subd. 1a. Surgical center tax. A tax is imposed on each surgical center equal to two percent
of its gross revenues.
    Subd. 1b.[Repealed, 1997 c 225 art 3 s 23]
    Subd. 2. Provider tax. A tax is imposed on each health care provider equal to two percent
of its gross revenues.
    Subd. 3. Wholesale drug distributor tax. A tax is imposed on each wholesale drug
distributor equal to two percent of its gross revenues.
    Subd. 4. Use tax; prescription drugs. (a) A person that receives prescription 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 to the wholesale drug distributor
multiplied by the tax percentage specified in this section. Liability for the tax is incurred when
prescription drugs are received or delivered in Minnesota by the person.
(b) A person that receives prescription drugs for use in Minnesota from a nonresident
pharmacy required to be registered under section 151.19 is subject to a tax equal to the price
paid by the nonresident pharmacy to the wholesale drug distributor or the price received by
the nonresident pharmacy, whichever is lower, multiplied by the tax percentage specified in
this section. Liability for the tax is incurred when prescription drugs are received in Minnesota
by the person.
(c) A tax imposed under this subdivision does not apply to purchases by an individual
for personal consumption.
    Subd. 4a. Tax collection. A wholesale drug distributor with nexus in Minnesota, who is not
subject to tax under subdivision 3, on all or a particular transaction or a nonresident pharmacy
with nexus in Minnesota, is required to collect the tax imposed under subdivision 4, from the
purchaser of the drugs and give the purchaser a receipt for the tax paid. The tax collected shall be
remitted to the commissioner in the manner prescribed by section 295.55, subdivision 3.
    Subd. 5. Volunteer ambulance services. Volunteer ambulance services are not subject to the
tax under this section. For purposes of this requirement, "volunteer ambulance service" means an
ambulance service in which all of the individuals whose primary responsibility is direct patient
care meet the definition of volunteer under section 144E.001, subdivision 15. The ambulance
service may employ administrative and support staff, and remain eligible for this exemption, if
the primary responsibility of these staff is not direct patient care.
    Subd. 6. Hearing aids and prescription eyewear. The tax liability of a person who meets
the definition of a health care provider solely because the person sells or repairs hearing aids and
related equipment or prescription eyewear is limited to the gross revenues received from the
sale or repair of these items.
    Subd. 7. Tax reduction. Notwithstanding subdivisions 1, 1a, 2, 3, and 4, the tax imposed
under this section equals for calendar years 1998 to 2003, 1.5 percent of the gross revenues
received on or after January 1, 1998, and before January 1, 2004.
History: 1992 c 549 art 9 s 7; 1993 c 345 art 13 s 12,13; 1Sp1993 c 6 s 25; 1994 c 625 art
13 s 10; 1996 c 471 art 6 s 6; 1997 c 31 art 4 s 7; 1997 c 84 art 4 s 3; 1997 c 199 s 14; 1997 c 225
art 3 s 11-13,23; 1997 c 251 s 27,28; 1998 c 389 art 16 s 13,14; 1999 c 8 s 5; 1999 c 243 art 8 s
2; 1Sp2001 c 5 art 14 s 5,6; 1Sp2005 c 3 art 6 s 7