Bill Text: MN SF1387 | 2011-2012 | 87th Legislature | Introduced
Bill Title: MinnesotaCare provider tax contingent reduction
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2011-05-05 - Referred to Taxes [SF1387 Detail]
Download: Minnesota-2011-SF1387-Introduced.html
1.2relating to taxation; providing for a contingent reduction in the MinnesotaCare
1.3provider tax;amending Minnesota Statutes 2010, sections 295.52, by adding a
1.4subdivision; 297I.05, subdivision 5.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 295.52, is amended by adding a
1.7subdivision to read:
1.8 Subd. 8. Contingent reduction in tax rate. (a) On July 1 of each year, beginning
1.9July 1, 2011, the commissioner of management and budget shall determine the projected
1.10revenues and expenditures from the health care access fund for the tax year beginning
1.11the following January 1, based on the most recent February forecast and any legislative
1.12session changes.
1.13(b) If the commissioner of management and budget determines that the projected
1.14revenues for the following tax year plus any projected balance from the previous June
1.1530 exceed 125 percent of the projected health care access fund expenditures for the
1.16following tax year, then the commissioner of management and budget, in consultation
1.17with the commissioner of revenue, shall reduce the tax rates for the taxes levied under
1.18subdivisions 1, 1a, 2, 3, and 4, effective on January 1 of the following tax year, so that
1.19projected revenues in the following tax year equal 125 percent of projected expenditures
1.20minus any projected balance from the previous June 30.
1.21(c) The dollar value of the rate reduction in paragraph (b) must be proportional to the
1.22share of total health care access fund revenue raised by the taxes levied under subdivisions
1.231, 1a, 2, 3, and 4, and the commissioner of management and budget shall coordinate this
1.24rate reduction with the rate reduction authorized in section 297I.05, subdivision 5.
2.1 Sec. 2. Minnesota Statutes 2010, section 297I.05, subdivision 5, is amended to read:
2.2 Subd. 5. Health maintenance organizations, nonprofit health service plan
2.3corporations, and community integrated service networks. (a) A tax is imposed on
2.4health maintenance organizations, community integrated service networks, and nonprofit
2.5health care service plan corporations. The rate of tax is equal to one percent of gross
2.6premiums less return premiums on all direct business received by the organization,
2.7network, or corporation or its agents in Minnesota, in cash or otherwise, in the calendar
2.8year.
2.9(b) The commissioner shall deposit all revenues, including penalties and interest,
2.10collected under this chapter from health maintenance organizations, community integrated
2.11service networks, and nonprofit health service plan corporations in the health care access
2.12fund. Refunds of overpayments of tax imposed by this subdivision must be paid from
2.13the health care access fund. There is annually appropriated from the health care access
2.14fund to the commissioner the amount necessary to make any refunds of the tax imposed
2.15under this subdivision.
2.16(c) On July 1 of each year, beginning July 1, 2011, the commissioner of management
2.17and budget shall determine the projected revenues and expenditures from the health care
2.18access fund for the tax year beginning the following January 1, based on the most recent
2.19February forecast and any legislative session changes.
2.20(d) If the commissioner of management and budget determines that the projected
2.21revenues for the following tax year plus any projected balance from the previous June
2.2230 exceed 125 percent of the projected health care access fund expenditures for the
2.23following tax year, then the commissioner of management and budget, in consultation
2.24with the commissioner of revenue, shall reduce the tax rate for the tax levied under
2.25paragraph (a), effective on January 1 of the following tax year, so that projected revenues
2.26in the following tax year equal 125 percent of projected expenditures minus any projected
2.27balance from the previous June 30.
2.28(e) The dollar value of the rate reduction in paragraph (d) must be proportional to the
2.29share of total health care access fund revenue raised by the tax levied under paragraph (a),
2.30and the commissioner of management and budget shall coordinate this rate reduction with
2.31the rate reduction authorized in section 295.52, subdivision 8.
1.3provider tax;amending Minnesota Statutes 2010, sections 295.52, by adding a
1.4subdivision; 297I.05, subdivision 5.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 295.52, is amended by adding a
1.7subdivision to read:
1.8 Subd. 8. Contingent reduction in tax rate. (a) On July 1 of each year, beginning
1.9July 1, 2011, the commissioner of management and budget shall determine the projected
1.10revenues and expenditures from the health care access fund for the tax year beginning
1.11the following January 1, based on the most recent February forecast and any legislative
1.12session changes.
1.13(b) If the commissioner of management and budget determines that the projected
1.14revenues for the following tax year plus any projected balance from the previous June
1.1530 exceed 125 percent of the projected health care access fund expenditures for the
1.16following tax year, then the commissioner of management and budget, in consultation
1.17with the commissioner of revenue, shall reduce the tax rates for the taxes levied under
1.18subdivisions 1, 1a, 2, 3, and 4, effective on January 1 of the following tax year, so that
1.19projected revenues in the following tax year equal 125 percent of projected expenditures
1.20minus any projected balance from the previous June 30.
1.21(c) The dollar value of the rate reduction in paragraph (b) must be proportional to the
1.22share of total health care access fund revenue raised by the taxes levied under subdivisions
1.231, 1a, 2, 3, and 4, and the commissioner of management and budget shall coordinate this
1.24rate reduction with the rate reduction authorized in section 297I.05, subdivision 5.
2.1 Sec. 2. Minnesota Statutes 2010, section 297I.05, subdivision 5, is amended to read:
2.2 Subd. 5. Health maintenance organizations, nonprofit health service plan
2.3corporations, and community integrated service networks. (a) A tax is imposed on
2.4health maintenance organizations, community integrated service networks, and nonprofit
2.5health care service plan corporations. The rate of tax is equal to one percent of gross
2.6premiums less return premiums on all direct business received by the organization,
2.7network, or corporation or its agents in Minnesota, in cash or otherwise, in the calendar
2.8year.
2.9(b) The commissioner shall deposit all revenues, including penalties and interest,
2.10collected under this chapter from health maintenance organizations, community integrated
2.11service networks, and nonprofit health service plan corporations in the health care access
2.12fund. Refunds of overpayments of tax imposed by this subdivision must be paid from
2.13the health care access fund. There is annually appropriated from the health care access
2.14fund to the commissioner the amount necessary to make any refunds of the tax imposed
2.15under this subdivision.
2.16(c) On July 1 of each year, beginning July 1, 2011, the commissioner of management
2.17and budget shall determine the projected revenues and expenditures from the health care
2.18access fund for the tax year beginning the following January 1, based on the most recent
2.19February forecast and any legislative session changes.
2.20(d) If the commissioner of management and budget determines that the projected
2.21revenues for the following tax year plus any projected balance from the previous June
2.2230 exceed 125 percent of the projected health care access fund expenditures for the
2.23following tax year, then the commissioner of management and budget, in consultation
2.24with the commissioner of revenue, shall reduce the tax rate for the tax levied under
2.25paragraph (a), effective on January 1 of the following tax year, so that projected revenues
2.26in the following tax year equal 125 percent of projected expenditures minus any projected
2.27balance from the previous June 30.
2.28(e) The dollar value of the rate reduction in paragraph (d) must be proportional to the
2.29share of total health care access fund revenue raised by the tax levied under paragraph (a),
2.30and the commissioner of management and budget shall coordinate this rate reduction with
2.31the rate reduction authorized in section 295.52, subdivision 8.
