HF3332

HF3332 (Legislative Session 94 (2025-2026))

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

Related bill: SF3526

AI Generated Summary

Purpose of the Bill

The purpose of this bill is to amend the existing taxation laws in Minnesota related to health care services. Specifically, it aims to update which providers are subject to the health care provider tax by removing certain types of health care services from the definition of taxable health care providers.

Main Provisions

Amended Definition: The bill revises the definition of which health care providers are subject to a gross revenues tax.
Exemptions Added: It specifies new exemptions by excluding certain services and providers from this tax:
- Dental services
- Podiatric services
- Chiropractic services
- Optometric or optician services
- Psychological services
These services will no longer be considered when determining gross revenues for the health care provider tax.

Significant Changes to Existing Law

The bill changes the existing tax law to exempt additional health care service providers from the health care provider tax, effectively broadening the list of non-taxable services.
By removing certain health care services from taxable status, the bill reduces the tax burden on these specific types of providers.

Relevant Terms

health care provider tax, gross revenues, exemption, dental services, podiatric services, chiropractic services, optometric services, psychological services, taxation, Minnesota statutes.

Bill text versions

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
May 17, 2025	House	Floor	Action	Introduction and first reading, referred to	Taxes

Citations

[
  {
    "analysis": {
      "added": [
        "The bill adds new exclusions under the health care provider definition, such as specific professional services like dental and optometric."
      ],
      "removed": [],
      "summary": "This bill amends the definition of health care provider in section 295.50, subdivision 4, affecting applicability of health care provider tax. ",
      "modified": []
    },
    "citation": "295.50",
    "subdivision": "subdivision 4"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Section reference to the medical assistance program under chapter 256B.",
      "modified": [
        "Clarification of reimbursement conditions under the medical assistance program."
      ]
    },
    "citation": "256B",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References to licensing requirements for nursing homes and other home care providers under chapter 144A.",
      "modified": []
    },
    "citation": "144A",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Reference to required registration for housing with services establishments under chapter 144D.",
      "modified": []
    },
    "citation": "144D",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Reference to registration of board and lodging establishments providing custodial services under section 157.17.",
      "modified": []
    },
    "citation": "157.17",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Definition of day training and habilitation services for adults with developmental disabilities in section 252.41, subdivision 3.",
      "modified": []
    },
    "citation": "252.41",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Referenced as it relates to taxability under section 295.53, subdivision 1.",
      "modified": []
    },
    "citation": "295.53",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Reference to licensing for supervised living facilities for persons with developmental disabilities as defined by Minnesota Rules.",
      "modified": []
    },
    "citation": "4665.0100 to 4665.9900",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Definition reference for adult foster homes.",
      "modified": []
    },
    "citation": "9555.5105",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Definition reference for boarding care homes.",
      "modified": []
    },
    "citation": "4655.0100",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Definition reference for adult day care centers.",
      "modified": []
    },
    "citation": "9555.9600",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Definition reference for home health agencies under Minnesota Rules.",
      "modified": []
    },
    "citation": "9505.0175",
    "subdivision": "subpart 15"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Definition reference for personal care services and supervision.",
      "modified": []
    },
    "citation": "9505.0335",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Definition reference for home care nursing services.",
      "modified": []
    },
    "citation": "9505.0360",
    "subdivision": ""
  }
]

Progress through the legislative process

17%

In Committee