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)
[Introduced January 30, 1998; referred to
the Committee on Finance.]
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.
§11-27-6. 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.