Purpose of the Bill

The bill proposes changes to the current Minnesota tax laws concerning the health care provider tax. Specifically, it aims to update the definition of "health care provider" to exclude certain services from being subject to the health care provider tax.

Main Provisions

• Redefinition of Health Care Provider: The bill amends Minnesota Statutes to redefine what constitutes a health care provider.
• Exemptions:
  • Hospitals, medical supplies distributors, nursing homes, wholesale drug distributors, pharmacies, and surgical centers are explicitly named exclusions.
  • Bus and taxicab services, which are not ambulance services, supervised living facilities for those with developmental disabilities, and certain housing establishments providing supportive or health supervision services are also excluded.
  • Educational institutions and persons providing services such as personal care for their employees, without charging service fees or payments for extended coverage, are listed as exemptions.
  • Entities that solely provide dental, podiatric, chiropractic, optometric, optician, or psychological services are added to the list of non-taxable providers.

Significant Changes

The bill significantly amends the definition of "health care provider" by excluding numerous types of services and facilities that were previously included under Minnesota's health care provider tax. This effectively reduces the scope of services subject to taxation.

Relevant Terms

health care provider tax, exemption, hospitals, nursing homes, pharmacies, dental services, podiatric services, chiropractic services, optometric services, psychological services, Minnesota Statutes, taxable services.