Senate Bill No. 474
(By Senators Walker, Dawson, Unger, McKenzie, McCabe, Mitchell,
Hunter, Snyder, Kessler, Plymale, Prezioso, Minard, Helmick,
Fanning, Edgell, Sharpe, Ross, Ball, Love, Oliverio, Redd, Boley,
Deem, Minear, Sprouse, Bowman, Wooton, Tomblin (Mr. President),
Dittmar, Jackson and Anderson)
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[Introduced February 14, 2000; referred to the Committee
on Finance.]
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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.
ยง11-27-16. Imposition of tax on providers of physicians'
services.
(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-three.
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
percent.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.