H. B. 4609
(By Delegate McGraw)
[Introduced February 22, 2000; referred to the
Committee on Finance.]
A BILL to amend and reenact section sixteen, article
twenty-seven, chapter eleven of the code of West Virginia,
one thousand nine hundred thirty-one, as amended, relating
to tax on providers of physicians' services; and phasing out
same by reducing the rate of tax in five equal increments.
Be it enacted by the Legislature of West Virginia:
That section sixteen, 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.
§11-27-16. Imposition of tax on providers of physicians'
(a) Imposition of tax. -- For the privilege of engaging or continuing within this state in the business of providing
physicians' 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 two percent of the gross
receipts derived by the taxpayer from furnishing physicians'
services in this state: Provided, That, as of the first day of
July, two thousand, the tax shall be one and six tenths percent;
as of the first day of January, two thousand one, the tax shall
be one and two tenths percent; as of the first day of January,
two thousand two, the tax shall be eighth tenths of one percent;
as of the first day of January, two thousand three, the tax shall
be four tenths of one percent; and, as of the first day of
January, two thousand four, the privilege of engaging or
continuing within this state in the business of providing
physicians' services shall no longer be subject to the tax
imposed by this section.
(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 physicians' 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) "Physicians' services" means those services that are
physicians' services for purposes of Section 1903(w) of the
Social Security Act.
(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-
NOTE: The purpose of this bill is to phase out the health care provider tax on physicians' services (currently two percent
on gross receipts) in five annual increments of four tenths of a
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.