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HF3071 (Legislative Session 94 (2025-2026))

Health care provider taxes; gross revenues required to be determined inclusive of rebates.

AI Generated Summary

Purpose of the Bill

The purpose of this bill is to modify the way gross revenues are calculated for health care providers, hospitals, surgical centers, health care providers, wholesale drug distributors, and staff model health plan companies in Minnesota concerning taxation.

Main Provisions

  • Gross Revenue Calculation: The bill requires that gross revenues for these entities include all money received for services, products, and specifically rebates.
  • Rebates Inclusion: For wholesale drug distributors, the bill mandates that any rebates given to customers must be included in the gross revenue calculations. These rebates could be provided through various means, including contractual agreements.

Significant Changes to Existing Law

  • The bill amends Minnesota Statutes 2024, section 295.50, subdivision 3, by specifying that certain types of rebates must be included in the gross revenue calculations for tax purposes.
  • This change ensures that rebates given by wholesale drug distributors are considered part of the revenue for taxation, closing any potential loopholes where these rebates might previously have been excluded.

Relevant Terms

  • Gross Revenues
  • Health Care Provider Tax
  • Rebate
  • Wholesale Drug Distributor
  • Patient Services
  • Legend Drugs
  • Staff Model Health Plan

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
April 01, 2025HouseFloorActionIntroduction and first reading, referred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "Inclusion of rebates in gross revenue calculations for wholesale drug distributors."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill amends the definition of gross revenues for health care provider taxes under section 295.50, subdivision 3.",
      "modified": [
        "Clarifies the revenue sources included for hospitals, surgical centers, and other health care providers."
      ]
    },
    "citation": "295.50",
    "subdivision": "subdivision 3"
  }
]

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