H. B. 2076
(By Delegate McGraw)
[Introduced February 14, 2001; 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'
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 one, the tax shall be one and six-tenths
percent; as of the first day of January, two thousand two, the
tax shall be one and two-tenths percent; as of the first day of
January, two thousand three, the tax shall be eighth tenths of
one percent; as of the first day of January, two thousand four,
the tax shall be four tenths of one percent; and, as of the first
day of January, two thousand five, 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 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) "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.