WEST virginia Legislature
2017 regular session
By
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to the Committee on Health and Human Resources then Finance.
A BILL to amend the Code
of West Virginia, 1931, as amended, by adding thereto a new section, designated
§11-15-9p, relating to creating the Save the Hospitals Act; exempting nonprofit
hospitals that provide a certain amount of uncompensated care from sales tax
and requiring West Virginia Hospital Finance Authority to promulgate rules to
effectuate this section.
Be it enacted by the
Legislature of West Virginia:
That the Code of West
Virginia, 1931, as amended, be amended by adding thereto a new section,
designated §11-15-9p, to read as follows:
ARTICLE 15. CONSUMERS SALES AND SERVICE TAX.
§11-15-9p. Exemption for nonprofit hospitals providing
uncompensated care.
(a) Short Title. – This
section shall be known and may be cited as the "Save the Hospitals
Act."
(b) Definitions. –
(1) “Hospital” has the same
meaning as provided in section one, article five-b, chapter sixteen of this
code.
(2) “Nonprofit hospital”
means any hospital that is exempt from federal income tax under 26 U.S.C. §
501(c)(3) of the Internal Revenue Code.
(3) “Taxable year” means the
calendar year, or the fiscal year ending during such calendar year, upon the
basis of which tax liability is computed under this article. "Taxable year" means, in case of a
return made for a fractional part of a year under the provisions of this
article, or under regulations promulgated by the Tax Commissioner, the period
for which such return is made.
(4) “Total net patient
revenue” means the estimated net realized amounts from patients, third-party
payors and others for health care services rendered, including estimated
retroactive adjustments due to future audits, reviews, settlements and
investigations.
(5) “Uncompensated care
costs” means the dollar amount entered into Line 31 of Worksheet S-10 of a
provider's Medicare Cost Report and submitted to the United States Secretary of
Health and Human Services or his or her designee, pursuant to 42 USCS § 1395h
and 42 C.F.R. §413.20.
(c) Notwithstanding any
provision of this code, any nonprofit hospital that incurred uncompensated care
costs equal to or greater than four percent of the hospital's total net patient
revenue during the hospital's taxable year ending in the calendar year of 2016
is exempt from the tax imposed by this article for the duration of the
hospital's taxable year ending in 2017. Thereafter, any nonprofit hospital that
incurs uncompensated care costs equal to or greater than four percent of the
hospital's total net patient revenue during a taxable year is exempt from the
tax imposed by the article for the duration of the subsequent taxable year.
(d) The West Virginia
Hospital Finance Authority shall issue a form by which a hospital may apply for
the exemption created by this section.
The Tax Commissioner shall promptly issue a certificate of exemption to
any hospital that qualifies for an exemption under this section and files an
application for the exemption before the end of the taxable year in which the
hospital is exempt. If a hospital pays
any amount of sales tax after applying for but before receiving a certificate
of exemption during a year in which the hospital is exempt under this section,
the Tax Commissioner shall issue a refund for any such amount.
(e) The West Virginia
Hospital Finance Authority shall, no later than July 1, 2017, promulgate rules
to effectuate and administer this section.
NOTE: The purpose of this bill is
to create the Save the Hospitals Act; exempting nonprofit hospitals that
provide a certain amount of uncompensated care from sales tax and requiring
West Virginia Hospital Finance Authority to promulgate rules to effectuate this
section.
Strike-throughs indicate language
that would be stricken from a heading or the present law and underscoring
indicates new language that would be added.