§11-27-11. Imposition of tax on providers of nursing facility
services, other than services of intermediate care
facilities for individuals with an intellectual
disability.
(a) Imposition of tax. -- For the privilege of engaging or
continuing within this state in the business of providing nursing
facility services, other than those services of intermediate care
facilities for individuals with an intellectual disability, there
is levied and shall be collected from every person rendering such
service an annual broad-based health care related tax: Provided,
That hospitals which provide nursing facility services may adjust
nursing facility rates to the extent necessary to compensate for
the tax without first obtaining approval from the health care
authority: Provided, however, That the rate adjustment is limited
to a single adjustment during the initial year of the imposition of
the tax which adjustment is exempt from prospective review by the
health care authority and further which is limited to an amount not
to exceed the amount of the tax which is levied against the
hospital for the provision of nursing facility services pursuant to
this section. The health care authority shall retroactively review
the rate increases implemented by the hospitals under this section
during the regular rate review process. A hospital which fails to
meet the criteria established by this section for a rate increase
exempt from prospective review is subject to the penalties imposed
under article twenty-nine-b, chapter sixteen of the code.
(b) Rate and measure of tax. -- The tax imposed in subsection
(a) of this section is five and one-half percent of the gross
receipts derived by the taxpayer from furnishing nursing facility
services in this state, other than services of intermediate care
facilities for individuals with an intellectual disability. This
rate shall be increased to five and ninety-five one hundredths
percent of the gross receipts received or receivable by providers
of nursing facility services after June 30, 2004, and shall again
be decreased to five and one- half percent of the gross receipts
received or receivable by providers of nursing services after
October 31, 2007.
(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 nursing facility 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 are allowed to
reduce gross receipts by their bad debts, to the extent the amount
of those bad debts was previously included in gross receipts upon
which the tax imposed by this section was paid.
(2) "Nursing facility services" means those services that are
nursing facility services for purposes of Section 1903(w) of the
Social Security Act.
(d) Effective date. -- The tax imposed by this section applies to gross receipts received or receivable by providers after May 31,
1993.