Connecticut House Bill HB07058

Connecticut 2015 Regular Session

• Introduced: 4/14/15
• Refer: 4/14/15

Caption

An Act Concerning The Hospital Tax.

Impact

The proposed changes in HB 07058 will significantly impact state revenue from healthcare taxation, particularly as hospitals will be relieved from an imposed tax that has been a part of their financial obligations for several years. The gradual reduction in taxes may also lead to enhanced financial stability for hospitals, potentially allowing them to allocate resources to patient care and infrastructure rather than tax liabilities.

Summary

House Bill 07058 aims to phase out the tax imposed on hospitals based on their net patient revenue over a five-year period. Introduced in 2015, the bill specifies a gradual decrease in tax rates, starting at 80% of the tax amount from the fiscal year 2012 in 2017, leading to a complete elimination of the tax by 2021. The bill mandates hospitals to report their net patient revenue periodically to ensure compliance during the phase-out process.

Contention

There may be notable contention surrounding this bill particularly regarding the implications for state budget and healthcare financing. While the intention is to support hospitals financially, critics might argue that the reduction of tax revenues could negatively impact essential state services, especially in healthcare funding areas that could see reductions as the state seeks to balance its budget. Furthermore, the criteria for determining financial hardship exemptions might draw scrutiny and debate.