sb474 sub1 eng

ENGROSSED
COMMITTEE SUBSTITUTE
FOR
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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[Originating in the Committee on Finance;
reported March 1, 2000.]
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A BILL to amend and reenact sections five, six, fourteen, sixteen and seventeen, article twenty-seven, chapter eleven of the code of West Virginia, one thousand nine hundred thirty-one, as amended, all relating to health care provider taxes on physicians, dentists, chiropractors and podiatrists; and phasing out same by reducing the rate of tax in ten equal increments.

Be it enacted by the Legislature of West Virginia:

That sections five, six, twelve, fourteen, sixteen, seventeen and nineteen, article twenty-seven, chapter eleven of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted, all to read as follows:

ARTICLE 27. HEALTH CARE PROVIDER TAXES.

§11-27-5. Imposition of tax on providers of chiropractic services.

(a) Imposition of tax. -- For the privilege of engaging or continuing within this state in the business of providing chiropractic services, there is hereby levied and shall be collected from every person rendering ~~such~~ the 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 chiropractic services in this state.

(1) "Gross receipts" means the amount received or receivable, whether in cash or in kind, from patients, third-party payors and others for chiropractic 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~~ the allowances are included therein, and by bad debts, to the extent the amount of ~~such~~ the 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) "Chiropractic services" means those services furnished in the practice of chiropractic by a person entitled to practice chiropractic 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) On and after the first day of July, two thousand nine, the tax imposed by this section shall be repealed and of no further effect. On and after midnight of the first day of July two thousand, the rate of tax imposed on chiropractic services shall be reduced by ten percent for services rendered on or after that day: Provided, That at midnight on the first day of July of each calendar year for the nine years thereafter, the tax shall be reduced an additional ten percent of the rate in effect on the first day of January, two thousand, until the tax is fully repealed.

§11-27-6. Imposition of tax on providers of dental services.

(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~~ the service an annual broad-based health care related tax.

(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~~ the 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) On and after the first day of July, two thousand nine, the tax imposed by this section shall be repealed and of no further effect. On and after midnight of the first day of July two thousand, the rate of tax imposed on dental services shall be reduced by ten percent for services rendered on or after that day: Provided, That at midnight on the first day of July of each calendar year for the nine years thereafter, the tax shall be reduced an additional ten percent of the rate in effect on the first day of January, two thousand, until the tax is fully repealed.

§11-27-12. Imposition of tax on providers of nursing services.

(a) Imposition of tax. -- For the privilege of engaging or continuing within this state in the business of providing nursing services, there is ~~hereby~~ levied and shall be collected from every person rendering ~~such~~ the 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~~ is one and three-fourths percent of the gross receipts derived by the taxpayer from furnishing nursing services in this state.

(1) "Gross receipts" means the amount received or receivable, whether in cash or in kind, from patients, third-party payors and others for nursing 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~~ are allowed to reduce gross receipts by their contractual allowances, to the extent ~~such~~ the allowances are included therein, and by bad debts, to the extent the amount of ~~such~~ the 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) "Nursing services" means all nursing acts performed by a registered or practical nurse entitled to provide nursing services in this state, including services of nurse-midwives, nurse practitioners and private duty nurses.

(d) Effective date. -- The tax imposed by this section ~~shall apply~~ applies to gross receipts received or receivable by providers after the thirty-first day of May, one thousand nine hundred ninety-three.

(e) On and after the first day of July, two thousand nine, the tax imposed by this section shall be repealed and of no further effect. On and after midnight of the first day of July two thousand, the rate of tax imposed on nursing services shall be reduced by ten percent for services rendered on or after that day: Provided, That at midnight on the first day of July of each calendar year for the nine years thereafter, the tax shall be reduced an additional ten percent of the rate in effect on the first day of January, two thousand, until the tax is fully repealed.

§11-27-14. Imposition of tax on providers of optometric services.

(a) Imposition of tax. -- For the privilege of engaging or continuing within this state in the business of providing optometric services, there is hereby levied and shall be collected from every person rendering such service an annual broad-based health care related tax.

(1) "Gross receipts" means the amount received or receivable, whether in cash or in kind, from patients, third-party payors and others for optometric 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) "Optometric services" means those services furnished in the practice of optometry by a person entitled to practice optometry 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) On and after the first day of July, two thousand nine, the tax imposed by this section shall be repealed and of no further effect. On and after midnight of the first day of July two thousand, the rate of tax imposed on optometric services shall be reduced by ten percent for services rendered on or after that day: Provided, That at midnight on the first day of July of each calendar year for the nine years thereafter, the tax shall be reduced an additional ten percent of the rate in effect on the first day of January, two thousand, until the tax is fully repealed.

§11-27-16. 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~~ the 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.

(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~~ the allowances are included therein, and by bad debts, to the extent the amount of ~~such~~ the 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.

(e) On and after the first day of July, two thousand nine, the tax imposed by this section shall be repealed and of no further effect. On and after midnight of the first day of July two thousand, the rate of tax imposed on physicians' services shall be reduced by ten percent for services rendered on or after that day: Provided, That at midnight on the first day of July of each calendar year for the nine years thereafter, the tax shall be reduced an additional ten percent of the rate in effect on the first day of January, two thousand, until the tax is fully repealed.

§11-27-17. Imposition of tax on providers of podiatry services.

(a) Imposition of tax. -- For the privilege of engaging or continuing within this state in the business of providing podiatry services, there is hereby levied and shall be collected from every person rendering such service an annual broad-based health care related tax.

(1) "Gross receipts" means the amount received or receivable, whether in cash or in kind, from patients, third-party payors and others for podiatry 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) "Podiatry services" means those services furnished in the practice of podiatry by a person entitled to practice podiatry 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) On and after the first day of July, two thousand nine, the tax imposed by this section shall be repealed and of no further effect. On and after midnight of the first day of July two thousand, the rate of tax imposed on podiatry services shall be reduced by ten percent for services rendered on or after that day: Provided, That at midnight on the first day of July of each calendar year for the nine years thereafter, the tax shall be reduced an additional ten percent of the rate in effect on the first day of January, two thousand, until the tax is fully repealed.

§11-27-19. Imposition of tax on providers of therapists' services.

(a) Imposition of tax. -- For the privilege of engaging or continuing within this state in the business of providing therapists' services, there is ~~hereby~~ levied and shall be collected from every person rendering ~~such~~ the service an annual broad-based health care related tax.

(1) "Gross receipts" means the amount received or receivable, whether in cash or in kind, from patients, third-party payors and others for therapy 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~~ are allowed to reduce gross receipts by their contractual allowances, to the extent ~~such~~ the allowances are included therein, and by bad debts, to the extent the amount of ~~such~~ the 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) "Therapy services" includes physical therapy, speech therapy, occupational therapy, respiratory therapy, audiological services and rehabilitative specialist furnished by a person trained to furnish ~~such~~ the therapy and, where a license to practice is required by law, ~~such~~ the person is entitled to practice ~~such~~ the therapy in this state.

(e) On and after the first day of July, two thousand nine, the tax imposed by this section shall be repealed and of no further effect. On and after midnight of the first day of July two thousand, the rate of tax imposed on therapists' services shall be reduced by ten percent for services rendered on or after that day: Provided, That at midnight on the first day of July of each calendar year for the nine years thereafter, the tax shall be reduced an additional ten percent of the rate in effect on the first day of January, two thousand, until the tax is fully repealed.

Adopted
Rejected