H. B. 2362


(By Mr. Speaker, Mr. Kiss)

[Introduced February 20, 2001 ; referred to the

Committee on Finance.]





A BILL to amend and reenact sections six and sixteen, article twenty-seven, chapter eleven of the code of West Virginia, one thousand nine hundred thirty-one, as amended, all relating to tax on providers of dental and physicians' services; and providing for an incremental decrease in the tax assessed on these services.

Be it enacted by the Legislature of West Virginia:

That sections six and sixteen, 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.

§11-27-6. 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 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. Beginning on the first day of July, two thousand two, and on each first day of July thereafter through the year two thousand fourteen, the rate of tax set in this subsection shall be reduced by subtracting one eighth of one percent. The reduced rate shall apply to gross receipts derived from furnishing dental services on or after the applicable first day of July. Gross receipts derived after a change in rate from dental services rendered before the change in rate, shall remain taxable at the rate applicable at the time the service was delivered.

(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.

§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. Beginning on the first day of July, two thousand two, the rate of tax set in this subsection shall be reduced to one and one-half percent, which shall apply to gross receipts derived from furnishing physicians' services on or after that date. Thereafter, on each first day of July through the year two thousand fourteen, the rate of tax shall be further decreased by subtracting one eighth of one percent. The reduced rate shall apply to gross receipts derived from furnishing physicians' services on or after the applicable first day of July. Gross receipts derived after a change in rate from physicians' services rendered before the change in rate, shall remain taxable at the rate applicable at the time the service was rendered.

(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 provide for an incremental decrease in the tax assessed of the services provided by dentists and physicians.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.