Connecticut Seal

General Assembly

 

Raised Bill No. 368

February Session, 2014

 

LCO No. 1979

 

*01979_______FIN*

Referred to Committee on FINANCE, REVENUE AND BONDING

 

Introduced by:

 

(FIN)

 

AN ACT PHASING OUT THE HOSPITALS TAX.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Section 12-263b of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2014):

(a) (1) For each calendar quarter commencing on or after July 1, 2011, there is hereby imposed a tax on the net patient revenue of each hospital in this state to be paid each calendar quarter. The rate of such tax shall be up to the maximum rate allowed under federal law. The Commissioner of Social Services shall determine the base year on which such tax shall be assessed. The Commissioner of Social Services may, in consultation with the Secretary of the Office of Policy and Management and in accordance with federal law, exempt a hospital from the tax on payment earned for the provision of outpatient services based on financial hardship. Effective July 1, 2012, and for the succeeding fifteen months, the rates of such tax, the base year on which such tax shall be assessed, and the hospitals exempt from the outpatient portion of the tax based on financial hardship shall be the same tax rates, base year and outpatient exemption for hardship in effect on January 1, 2012.

(2) For the year commencing July 1, 2014, the annual amount of tax due from each hospital shall be equal to eighty per cent of the tax paid during the year commencing July 1, 2012. For the year commencing July 1, 2015, the annual amount of tax due from each hospital shall be equal to sixty per cent of the tax paid during the year commencing July 1, 2012. For the year commencing July 1, 2016, the annual amount of tax due from each hospital shall be equal to forty per cent of the tax paid during the year commencing July 1, 2012. For the year commencing July 1, 2017, the annual amount of tax due from each hospital shall be equal to twenty per cent of the tax paid during the year commencing July 1, 2012. For the year commencing July 1, 2018, and thereafter, no tax shall be due pursuant to this section. Payment of the tax due under this subdivision shall be in accordance with the provisions of subsection (b) of this section.

(b) Each hospital shall, on or before the last day of January, April, July and October of each year prior to July 1, 2018, render to the Commissioner of Revenue Services a return, on forms prescribed or furnished by the Commissioner of Revenue Services and signed by one of its principal officers, stating specifically the name and location of such hospital, and the amount of its net patient revenue as determined by the Commissioner of Social Services. Payment shall be made with such return. Each hospital shall file such return electronically with the department and make such payment by electronic funds transfer in the manner provided by chapter 228g, irrespective of whether the hospital would otherwise have been required to file such return electronically or to make such payment by electronic funds transfer under the provisions of chapter 228g.

Sec. 2. Section 3-114p of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2014):

At the close of each fiscal year commencing with the fiscal year ending June 30, 2012, to the fiscal year ending June 30, 2018, the Comptroller is authorized to record as revenue for such fiscal year the amount of tax imposed under the provisions of section 12-263b, as amended by this act, that is received by the Commissioner of Revenue Services not later than five business days after the last day of July immediately following the end of such fiscal year.

This act shall take effect as follows and shall amend the following sections:

Section 1

July 1, 2014

12-263b

Sec. 2

July 1, 2014

3-114p

Statement of Purpose:

To phase out the hospitals tax.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]