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SF3526 (Legislative Session 94 (2025-2026))

Health care services removal from the definition of providers subject to the health care provider tax

Related bill: HF3332

AI Generated Summary

Purpose of the Bill

The purpose of this bill is to amend the definition of "health care provider" for tax purposes in Minnesota. It aims to exclude certain healthcare services from being classified as taxable entities under the state's health care provider tax.

Main Provisions

  • The bill seeks to revise the list of services and professions categorized under "health care providers" that are subject to taxation.
  • Specific healthcare services such as dental, podiatric, chiropractic, optometric, optician, and psychological services would be excluded from the health care provider tax.

Significant Changes to Existing Law

  • The bill modifies Minnesota Statutes section 295.50, subdivision 4, by updating the definition of what constitutes a taxable health care provider.
  • It excludes services previously taxed, including certain optical, dental, and psychological services, among others, from the tax definition, potentially reducing the tax burden on these services.
  • Certain healthcare-related entities like hospitals, nursing homes, and pharmacies remain excluded from the taxpayer list, consistent with previous legislation.

Relevant Terms

health care provider, health care provider tax, Minnesota Statutes section 295.50, dental services, podiatric services, chiropractic services, optometric services, optician services, psychological services, tax exemption, healthcare taxation.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
May 16, 2025SenateFloorActionIntroduction and first reading
May 16, 2025SenateFloorActionIntroduction and first reading
May 16, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "Clarifies exclusions for specific healthcare providers."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill modifies the exclusions for certain health care services subject to tax under section 252.41, subdivision 3.",
      "modified": [
        "Adjusts definitions related to developmental disabilities services."
      ]
    },
    "citation": "252.41",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [
        "New health care services that are not subject to the provider tax."
      ],
      "removed": [
        "Certain health care services from the definition of taxable providers."
      ],
      "summary": "This bill revises the definition of health care provider in section 295.50, subdivision 4.",
      "modified": [
        "Refinements in classification of health care services."
      ]
    },
    "citation": "295.50",
    "subdivision": "subdivision 4"
  },
  {
    "analysis": {
      "added": [
        "Definitions for exempted funding sources."
      ],
      "removed": [],
      "summary": "This section concerns exemptions and exclusions from the health care provider tax under section 295.53, subdivision 1.",
      "modified": [
        "Clarified language on exemptions for certain fees."
      ]
    },
    "citation": "295.53",
    "subdivision": "subdivision 1"
  }
]

Sponsors