ENGROSSED

Senate Bill No. 256

(By Senators Walker, Dugan, White, Snyder, Kessler, Deem, Bailey, Tomblin, Mr. President, Scott, Anderson, Sharpe, Ross, Jackson, Prezioso, Kimble, Boley, Sprouse, Macnaughtan, Fanning, Chafin, Oliverio, Schoonover, Love, Ball, Plymale, Hunter, Dittmar and Craigo)

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[Introduced January 30, 1998; referred to

the Committee on Finance.]

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A BILL to amend and reenact section six, article twenty-seven, chapter eleven of the code of West Virginia, one thousand nine hundred thirty-one, as amended, relating to the taxation of providers of dental services; and reduction and abolishment of tax.

Be it enacted by the Legislature of West Virginia:
That section six, article twenty-seven, chapter eleven of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted to read as follows:
ARTICLE 27. HEALTH CARE PROVIDER TAXES.
ยง11-27-6. Imposition of tax on providers of dental services; reduction and abolishment of tax.

(a) Imposition of tax. -- For the privilege of engaging or continuing within this state in the business of providing dental services, there is hereby levied and shall be collected from every person rendering such service an annual broad-based health care related tax.
(b) Rate and measure of tax. -- The tax imposed in subsection (a) of this section shall be one and three-fourths percent of the gross receipts derived by the taxpayer from furnishing dental services in this state.
(c) Definitions. --
(1) "Gross receipts" means the amount received or receivable, whether in cash or in kind, from patients, third- party payors and others for dental services furnished by the provider, including retroactive adjustments under reimbursement agreements with third-party payors, without any deduction for any expenses of any kind: Provided, That accrual basis providers shall be allowed to reduce gross receipts by their contractual allowances, to the extent such allowances are included therein, and by bad debts, to the extent the amount of such bad debts was previously included in gross receipts upon which the tax imposed by this section was paid.
(2) "Contractual allowances" means the difference between revenue (gross receipts) at established rates and amounts realizable from third-party payors under contractual agreements.
(3) "Dental services" means those services furnished in the practice of dentistry by a person entitled to practice dentistry or dental surgery in this state.
(d) Effective date. -- The tax imposed by this section shall apply to gross receipts received or receivable by providers after the thirty-first day of May, one thousand nine hundred ninety- three.
(e) The tax imposed by this section, shall be reduced and abolished according to the following schedule:
(1) On the first day of July, one thousand nine hundred ninety-nine, the taxes shall be reduced to two thirds of the rate in effect at the time of the passage of this section.
(2) On the first day of July, two thousand, the taxes shall be reduced to one third of the rate in effect at the time of the passage of the section.
(3) On the first day of July, two thousand one, the taxes shall be abolished.