Date Requested: March 06, 2015
Time Requested: 10:00 AM
Agency: State Tax & Revenue Department
CBD Number: Version: Bill Number: Resolution Number:
3343 Introduced SB583
CBD Subject: Tax


FUND(S):

Medicaid State Share Fund

Sources of Revenue:

Special Fund

Legislation creates:

Neither Program nor Fund



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


    The purpose of this bill is to temporarily increase the amount of the health care provider tax on providers of nursing facility services, other than services of intermediate care facilities for individuals with an intellectual disability, from five and one-half percent to five and seventy-two one hundredths percent for services rendered after June 30, 2015; and then decrease the tax rate back down to five and one-half percent for services rendered after June 30, 2016.
    
    This bill would increase the Health Care Provider Tax on providers of nursing facility service, other than services of intermediate care facilities for individuals with an intellectual disability, to 5.72 percent, effective for services rendered after June 30, 2015. The bill reduces that tax rate back to 5.5 percent for services rendered after June 30, 2016. Passage of this bill would result in an increase in revenue to the Medicaid State Share Fund of up to $1.375 million for FY2016 and $0.125 million in FY2017.
    
    Additional administrative costs to the State would be $60,000 in FY2015 and $30,000 in FY2016.
    



Fiscal Note Detail


Effect of Proposal Fiscal Year
2015
Increase/Decrease
(use"-")
2016
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 60,000 30,000 0
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 60,000 30,000 0
2. Estimated Total Revenues 0 1,375,000 125,000


Explanation of above estimates (including long-range effect):


    This bill would increase the Health Care Provider Tax on providers of nursing facility service, other than services of intermediate care facilities for individuals with an intellectual disability, to 5.72 percent, effective for services rendered after June 30, 2015. The bill reduces that tax rate back to 5.5 percent for services rendered after June 30, 2016. Passage of this bill would result in an increase in revenue to the Medicaid State Share Fund of up to $1.375 million for FY2016 and $0.125 million in FY2017.
    
    Additional administrative costs to the State would be $60,000 in FY2015 and $30,000 in FY2016.
    



Memorandum


    



    Person submitting Fiscal Note: Mark Muchow
    Email Address: kerri.r.petry@wv.gov