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General Assembly Raised Bill No. 1550
January Session, 2025
LCO No. 6808
Referred to Committee on FINANCE, REVENUE AND
BONDING
Introduced by:
(FIN)
AN ACT CONCERNING THE APPLICABILITY OF THE HOSPITAL TAX
TO CHILDREN'S GENERAL HOSPITALS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Subsection (b) of section 12-263q of the general statutes is 1
repealed and the following is substituted in lieu thereof (Effective July 1, 2
2026): 3
(b) (1) The Commissioner of Social Services shall seek approval from 4
the Centers for Medicare and Medicaid Services to exempt from the net 5
revenue tax imposed under subsection (a) of this section the following: 6
(A) Specialty hospitals; and (B) [children's general hospitals; and (C)] 7
hospitals operated exclusively by the state other than a short-term 8
general hospital operated by the state as a receiver pursuant to chapter 9
920. Any hospital for which the Centers for Medicare and Medicaid 10
Services grants an exemption shall be exempt from the net revenue tax 11
imposed under subsection (a) of this section. Any hospital for which the 12
Centers for Medicare and Medicaid Services denies an exemption shall 13
be deemed to be a hospital for purposes of this section and shall be 14
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required to pay the net revenue tax imposed under subsection (a) of this 15
section on inpatient hospital services and outpatient hospital services at 16
the same effective rates set forth in subsection (a) of this section. 17
(2) Any children's general hospitals that were exempt prior to July 1, 18
2026, from the net revenue tax imposed under subsection (a) of this 19
section shall be required, on and after July 1, 2026, to pay such tax on 20
inpatient hospital services and outpatient hospital services at the same 21
effective rates set forth in subsection (a) of this section. 22
[(2)] (3) Each hospital shall provide to the Commissioner of Social 23
Services, upon request, such information as said commissioner may 24
require to make any computations necessary to seek approval for 25
exemption under this subsection. 26
[(3)] (4) As used in this subsection, (A) "specialty hospital" means a 27
health care facility, as defined in section 19a-630, other than a facility 28
licensed by the Department of Public Health as a short-term general 29
hospital or a short-term children's hospital. "Specialty hospital" 30
includes, but is not limited to, a psychiatric hospital or a chronic disease 31
hospital, and (B) "children's general hospital" means a health care 32
facility, as defined in section 19a-630, that is licensed by the Department 33
of Public Health as a short-term children's hospital. "Children's general 34
hospital" does not include a specialty hospital. 35
This act shall take effect as follows and shall amend the following
sections:
Section 1 July 1, 2026 12-263q(b)
Statement of Purpose:
To remove the hospital tax exemption on children's general hospitals.
[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.]
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