General Assembly Raised Bill No. 1053
January Session, 2017 LCO No. 6174
*06174_______FIN*
Referred to Committee on FINANCE, REVENUE AND BONDING
Introduced by:
(FIN)
General Assembly
Raised Bill No. 1053
January Session, 2017
LCO No. 6174
*06174_______FIN*
Referred to Committee on FINANCE, REVENUE AND BONDING
Introduced by:
(FIN)
AN ACT PHASING OUT THE HOSPITALS TAX.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1. Section 12-263b of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2017):
(a) (1) For each calendar quarter commencing on or after July 1, 2011, and prior to July 1, 2017, there is hereby imposed a tax on the net patient revenue of each hospital in this state to be paid each calendar quarter. The rate of such tax shall be up to the maximum rate allowed under federal law and in conformance with the state budget adopted by the General Assembly. Each hospital shall be promptly notified of the amount of tax due by the Commissioner of Social Services. The Commissioner of Social Services shall determine the base year on which such tax shall be assessed in order to ensure conformance with the state budget adopted by the General Assembly. The Commissioner of Social Services may, in consultation with the Secretary of the Office of Policy and Management and in accordance with federal law, exempt a hospital from the tax on payment earned for the provision of outpatient services based on financial hardship. Effective July 1, 2012, and for the succeeding fifteen months, the rates of such tax, the base year on which such tax shall be assessed [,] and the hospitals exempt from the outpatient portion of the tax based on financial hardship shall be the same tax rates, base year and outpatient exemption for hardship in effect on January 1, 2012.
(2) For each calendar quarter commencing on or after July 1, 2017, and prior to July 1, 2021, the amount of the tax imposed under subdivision (1) of this subsection shall be assessed in accordance with the provisions of this subdivision. The Commissioner of Social Services may, in consultation with the Secretary of the Office of Policy and Management and in accordance with federal law, exempt a hospital from the tax on payment earned for the provision of outpatient services based on financial hardship.
(A) For each calendar quarter commencing on or after July 1, 2017, and prior to July 1, 2018, the amount of the tax shall be equal to eighty per cent of the total amount of tax imposed on the hospital under subdivision (1) of this subsection during the calendar quarters commencing July 1, 2015, and prior to July 1, 2016.
(B) For each calendar quarter commencing on or after July 1, 2018, and prior to July 1, 2019, the amount of the tax shall be equal to sixty per cent of the total amount of tax imposed on the hospital under subdivision (1) of this subsection during the calendar quarters commencing July 1, 2015, and prior to July 1, 2016.
(C) For each calendar quarter commencing on or after July 1, 2019, and prior to July 1, 2020, the amount of the tax shall be equal to forty per cent of the total amount of tax imposed on the hospital under subdivision (1) of this subsection during the calendar quarters commencing July 1, 2015, and prior to July 1, 2016.
(D) For each calendar quarter commencing on or after July 1, 2020, and prior to July 1, 2021, the total amount of the tax shall be equal to twenty per cent of the amount of tax imposed on the hospital under subdivision (1) of this subsection during the calendar quarters commencing July 1, 2015, and prior to July 1, 2016.
(E) For calendar quarters commencing on or after July 1, 2021, no tax shall be imposed under this section.
(b) [Each] Until August 1, 2021, each hospital shall, on or before the last day of January, April, July and October of each year render to the Commissioner of Revenue Services a return, on forms prescribed or furnished by the Commissioner of Revenue Services and signed by one of its principal officers, stating specifically the name and location of such hospital, and the amount of its net patient revenue as determined by the Commissioner of Social Services. Payment shall be made with such return. Each hospital shall file such return electronically with the department and make such payment by electronic funds transfer in the manner provided by chapter 228g, irrespective of whether the hospital would otherwise have been required to file such return electronically or to make such payment by electronic funds transfer under the provisions of chapter 228g.
(c) Notwithstanding any other provision of law: [, for]
(1) For each calendar quarter commencing on or after July 1, 2015, and prior to January 1, 2016, the amount of tax credit or credits otherwise allowable against the taxes imposed under sections 12-263a to 12-263e, inclusive, and 12-263i shall not exceed fifty and one one-hundredths per cent of the amount of tax due under sections 12-263a to 12-263e, inclusive, and 12-263i with respect to such calendar quarter prior to the application of such credit or credits.
(2) For each calendar quarter commencing on or after January 1, 2016, and prior to January 1, 2017, the amount of tax credit or credits otherwise allowable against the taxes imposed under sections 12-263a to 12-263e, inclusive, and 12-263i shall not exceed fifty-five per cent of the amount of tax due under sections 12-263a to 12-263e, inclusive, and 12-263i with respect to such calendar quarter prior to the application of such credit or credits.
(3) For each calendar quarter commencing on or after January 1, 2017, and prior to January 1, 2018, the amount of tax credit or credits otherwise allowable against the taxes imposed under sections 12-263a to 12-263e, inclusive, and 12-263i shall not exceed sixty per cent of the amount of tax due under sections 12-263a to 12-263e, inclusive, and 12-263i with respect to such calendar quarter prior to the application of such credit or credits.
(4) For each calendar quarter commencing on or after January 1, 2018, and prior to January 1, 2019, the amount of tax credit or credits otherwise allowable against the taxes imposed under sections 12-263a to 12-263e, inclusive, and 12-263i shall not exceed sixty-five per cent of the amount of tax due under sections 12-263a to 12-263e, inclusive, and 12-263i with respect to such calendar quarter prior to the application of such credit or credits.
(5) For each calendar quarter commencing on or after January 1, 2019, and prior to July 1, 2021, the amount of tax credit or credits otherwise allowable against the taxes imposed under sections 12-263a to 12-263e, inclusive, and 12-263i shall not exceed seventy per cent of the amount of tax due under sections 12-263a to 12-263e, inclusive, and 12-263i with respect to such calendar quarter prior to the application of such credit or credits.
This act shall take effect as follows and shall amend the following sections:
Section 1 July 1, 2017 12-263b
This act shall take effect as follows and shall amend the following sections:
Section 1
July 1, 2017
12-263b
Statement of Purpose:
To phase out the hospitals tax.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]