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HF2466 (Legislative Session 94 (2025-2026))

Provider taxes contingent reduction provisions modified.

Related bill: SF2987

AI Generated Summary

Purpose of the Bill

The bill aims to modify existing tax provisions related to health care provider taxes. Its purpose is to ensure that tax rates are adjusted based on the financial health of the health care access fund in Minnesota.

Main Provisions

  • Projected Financial Review: By December 1 of each year, the commissioner of management and budget must assess the projected balance of the health care access fund for the next biennium (a two-year budgetary period).
  • Tax Rate Reduction: If the fund's projected balance shows that revenues exceed expenditures by more than 125%, the commissioner, in consultation with the commissioner of revenue, is mandated to reduce the health care provider tax rates. This reduction aims to bring the fund's balance closer to equilibrium.
  • Calculation Specifics: The reduction will be determined such that revenue aligns with not more than 125% of expenditures. The adjusted rate will be rounded to the nearest tenth of a percent.
  • Annual Assessment: The tax rate reduction is temporary, expiring at the end of each calendar year and must be reviewed annually to decide if further adjustments are necessary.

Significant Changes to Existing Law

  • The bill amends the process and criteria by which provider tax reductions are calculated, making it mandatory for the commissioners to act if certain financial thresholds are met.
  • Requires inclusion of projected revenues in financial assessments for more informed tax rate decisions.

Relevant Terms

health care access fund, provider tax, tax rate reduction, structural balance, biennium, revenue to expenditure ratio, fiscal policy

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 16, 2025HouseFloorActionIntroduction and first reading, referred toHealth Finance and Policy
March 25, 2025HouseFloorActionCommittee report, to adopt and re-refer toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "Clarifies the annual redetermination process for contingent tax rate reductions."
      ],
      "removed": [],
      "summary": "The bill amends the rules governing contingent reductions in provider taxes as outlined in section 295.52.",
      "modified": [
        "Adjusts the criteria for tax rate reductions by redefining the revenue to expenditure ratio requirements."
      ]
    },
    "citation": "295.52"
  }
]

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