Bill Text: MN HF1252 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Nonprofit hospital in-lieu tax imposed, and charity care credit provided.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2011-03-29 - Referred by Chair to Property and Local Tax Division [HF1252 Detail]
Download: Minnesota-2011-HF1252-Introduced.html
1.2relating to taxation; imposing an in-lieu tax on nonprofit hospitals; providing a
1.3credit for charity care;proposing coding for new law in Minnesota Statutes,
1.4chapter 272.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. [272.0295] IN-LIEU TAX ON HOSPITALS.
1.7 Subdivision 1. Application. Notwithstanding sections 272.02, subdivisions 4 and
1.87, hospitals are required to pay the tax under this section.
1.9 Subd. 2. Definitions. For the purposes of this section, the term:
1.10(1) "hospital" means a hospital, as defined in section 144.50, subdivision 2, that is
1.11exempt from property taxation under section 272.02, subdivision 4 or 7, but excludes a
1.12hospital that is owned and operated by, or on behalf of, the federal or state government
1.13or any unit of local government;
1.14(2) "estimated market value" means the value determined by the assessor under
1.15section 273.11, provided that the assessor's valuation is subject to the same appeals
1.16procedures as properties classified under section 273.13;
1.17(3) "tax capacity" means the tax capacity that would be determined if the property
1.18were classified as class 3a commercial-industrial under section 273.13, subdivision 24; and
1.19(4) "tax rate" for a taxing jurisdiction means the tax rate determined under section
1.20275.08 and the state commercial-industrial tax rate under section 275.025, subdivision 4;
1.21 Subd. 3. Gross tax. The county auditor must compute a gross tax amount for each
1.22property subject to taxation under this section equal to the sum of the amounts determined
1.23by multiplying the tax capacity by the tax rate for each jurisdiction with authority to levy a
1.24tax upon the property. For properties located in areas subject to chapter 276A or 473F, the
2.1areawide tax rate determined under those chapters shall not apply in the calculation of
2.2the gross tax.
2.3 Subd. 4. Charity care credit. (a) A hospital subject to taxation under this section
2.4may apply for a credit against the tax imposed under this section, based on the amount
2.5of charity care provided by the hospital in the year the property was assessed. Care or
2.6other services the hospital is required to provide for a patient under the federal Emergency
2.7Medical Treatment and Active Labor Act (EMTALA), United States Code, title 42, section
2.81395dd, is not eligible for the credit. The credit is equal to the hospital's choice of either
2.9the amount: (1) that meets the requirements of Minnesota Rules, part 4650.0115, subparts
2.101 and 2, or (2) determined and calculated under the requirements of the federal Hill-Burton
2.11Act, title XVI of the Public Health Services Act, as specified in Code of Federal
2.12Regulations, title 42, sections 124.501 to 124.507; provided, however, that the credit may
2.13not exceed the property's gross tax amount. A hospital must apply to the commissioner of
2.14revenue for the credit prior to February 28 of the year that the tax is payable, on a form
2.15prescribed by the commissioner and with the supporting documentation required by the
2.16commissioner. By March 31 of each year, the commissioner of revenue must notify the
2.17county auditor of the amount of charity care credit for each qualifying property.
2.18(b) For purposes of this subdivision, a hospital may claim credit for charity care it
2.19provided on or after July 1, 2011, on the same basis as charity care provided in 2012.
2.20 Subd. 5. Tax. The county auditor shall determine the property's net tax equal to the
2.21gross tax minus the amount of approved charity care credit. The credit shall be applied as
2.22a uniform reduction in each jurisdiction's gross tax amount. By April 15 of each year, each
2.23property subject to the tax under this section must be notified of the amount of tax due by
2.24a statement similar to the statement described in section 276.04.
2.25 Subd. 6. Payment of tax; collection. The tax determined under subdivision 5 must
2.26be paid to the county treasurer at the time and in the manner provided for payment of
2.27property taxes under section279.01, subdivision 1 , and, if unpaid, is subject to the same
2.28enforcement, collection, and interest and penalties as delinquent real estate taxes. Except
2.29to the extent inconsistent with this section, the provisions of sections
278.01 to
278.13 and
2.30279.01 to 279.37 apply to the taxes imposed under this section, and for purposes of those
2.31provisions, the taxes imposed under this section are considered real estate taxes.
2.32 Subd. 7. Distribution of revenues. Revenues from the taxes imposed under
2.33subdivision 5 must be part of the settlement between the county treasurer and the county
2.34auditor under section276.09 . The revenues attributable to the state general levy are
2.35subject to the settlement requirements of section 276.112.
3.1 Subd. 8. Proposed property taxes. For the purposes of the notices required under
3.2section 275.065, the gross tax rather than the net tax must be provided.
3.3 Subd. 9. Report. Information related to the tax imposed under this section must
3.4be reported each year to the commissioner of revenue as part of the abstracts of tax lists
3.5under section 275.29.
3.6 Subd. 10. Valuation; assessment year 2012. For assessment year 2012, the
3.7assessor must review and recertify the valuation of each property subject to the tax
3.8imposed under this section.
3.9EFFECTIVE DATE.This section is effective for taxes payable in 2013 and
3.10thereafter.
1.3credit for charity care;proposing coding for new law in Minnesota Statutes,
1.4chapter 272.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. [272.0295] IN-LIEU TAX ON HOSPITALS.
1.7 Subdivision 1. Application. Notwithstanding sections 272.02, subdivisions 4 and
1.87, hospitals are required to pay the tax under this section.
1.9 Subd. 2. Definitions. For the purposes of this section, the term:
1.10(1) "hospital" means a hospital, as defined in section 144.50, subdivision 2, that is
1.11exempt from property taxation under section 272.02, subdivision 4 or 7, but excludes a
1.12hospital that is owned and operated by, or on behalf of, the federal or state government
1.13or any unit of local government;
1.14(2) "estimated market value" means the value determined by the assessor under
1.15section 273.11, provided that the assessor's valuation is subject to the same appeals
1.16procedures as properties classified under section 273.13;
1.17(3) "tax capacity" means the tax capacity that would be determined if the property
1.18were classified as class 3a commercial-industrial under section 273.13, subdivision 24; and
1.19(4) "tax rate" for a taxing jurisdiction means the tax rate determined under section
1.20275.08 and the state commercial-industrial tax rate under section 275.025, subdivision 4;
1.21 Subd. 3. Gross tax. The county auditor must compute a gross tax amount for each
1.22property subject to taxation under this section equal to the sum of the amounts determined
1.23by multiplying the tax capacity by the tax rate for each jurisdiction with authority to levy a
1.24tax upon the property. For properties located in areas subject to chapter 276A or 473F, the
2.1areawide tax rate determined under those chapters shall not apply in the calculation of
2.2the gross tax.
2.3 Subd. 4. Charity care credit. (a) A hospital subject to taxation under this section
2.4may apply for a credit against the tax imposed under this section, based on the amount
2.5of charity care provided by the hospital in the year the property was assessed. Care or
2.6other services the hospital is required to provide for a patient under the federal Emergency
2.7Medical Treatment and Active Labor Act (EMTALA), United States Code, title 42, section
2.81395dd, is not eligible for the credit. The credit is equal to the hospital's choice of either
2.9the amount: (1) that meets the requirements of Minnesota Rules, part 4650.0115, subparts
2.101 and 2, or (2) determined and calculated under the requirements of the federal Hill-Burton
2.11Act, title XVI of the Public Health Services Act, as specified in Code of Federal
2.12Regulations, title 42, sections 124.501 to 124.507; provided, however, that the credit may
2.13not exceed the property's gross tax amount. A hospital must apply to the commissioner of
2.14revenue for the credit prior to February 28 of the year that the tax is payable, on a form
2.15prescribed by the commissioner and with the supporting documentation required by the
2.16commissioner. By March 31 of each year, the commissioner of revenue must notify the
2.17county auditor of the amount of charity care credit for each qualifying property.
2.18(b) For purposes of this subdivision, a hospital may claim credit for charity care it
2.19provided on or after July 1, 2011, on the same basis as charity care provided in 2012.
2.20 Subd. 5. Tax. The county auditor shall determine the property's net tax equal to the
2.21gross tax minus the amount of approved charity care credit. The credit shall be applied as
2.22a uniform reduction in each jurisdiction's gross tax amount. By April 15 of each year, each
2.23property subject to the tax under this section must be notified of the amount of tax due by
2.24a statement similar to the statement described in section 276.04.
2.25 Subd. 6. Payment of tax; collection. The tax determined under subdivision 5 must
2.26be paid to the county treasurer at the time and in the manner provided for payment of
2.27property taxes under section
2.28enforcement, collection, and interest and penalties as delinquent real estate taxes. Except
2.29to the extent inconsistent with this section, the provisions of sections
2.30279.01 to 279.37 apply to the taxes imposed under this section, and for purposes of those
2.31provisions, the taxes imposed under this section are considered real estate taxes.
2.32 Subd. 7. Distribution of revenues. Revenues from the taxes imposed under
2.33subdivision 5 must be part of the settlement between the county treasurer and the county
2.34auditor under section
2.35subject to the settlement requirements of section 276.112.
3.1 Subd. 8. Proposed property taxes. For the purposes of the notices required under
3.2section 275.065, the gross tax rather than the net tax must be provided.
3.3 Subd. 9. Report. Information related to the tax imposed under this section must
3.4be reported each year to the commissioner of revenue as part of the abstracts of tax lists
3.5under section 275.29.
3.6 Subd. 10. Valuation; assessment year 2012. For assessment year 2012, the
3.7assessor must review and recertify the valuation of each property subject to the tax
3.8imposed under this section.
3.9EFFECTIVE DATE.This section is effective for taxes payable in 2013 and
3.10thereafter.
