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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 bill aims to amend the existing definition of "health care provider" for the purposes of the health care provider tax in Minnesota. This includes removing certain services from being classified under this tax category, effectively exempting them from the associated taxes.

Main Provisions

  • Health Care Provider Definition Update: The amendment changes the scope of which individuals and services are considered health care providers under Minnesota tax law.
  • Exclusions from Provider Tax: The bill specifically excludes services such as dental, podiatric, chiropractic, optometric, and psychological services from being subject to the health care provider tax.
  • Clarification of Tax Liability: The bill provides clearer guidance on which entities are not liable for the provider tax, including certain educational institutions, personal care service providers, and others who employ health care providers solely for non-commercial purposes.

Significant Changes to Existing Law

  • Removes specific health care services (dental, podiatric, chiropractic, optometric, and psychological) from the list of taxed services under the provider category.
  • Updates and clarifies the list of entities that do not fall under the health care provider definition for tax purposes, effectively reducing their tax obligations.

Relevant Terms

health care provider, tax exclusion, health care provider tax, dental services, podiatric services, chiropractic services, optometric services, optician services, psychological services, Minnesota tax law, provider tax exemption.

Bill text versions

Actions

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

Citations

 
[
  {
    "analysis": {
      "added": [
        "Expanded services exempt from provider tax."
      ],
      "removed": [],
      "summary": "This bill modifies the definition of providers not subject to the health care provider tax under section 252.41, subdivision 3.",
      "modified": []
    },
    "citation": "252.41",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill references payment sources exempt from tax under section 295.53, subdivision 1.",
      "modified": [
        "Clarifies sources of payments for exempt services."
      ]
    },
    "citation": "295.53",
    "subdivision": "subdivision 1, paragraph b, clause 3 or 4"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Reference to entities licensed under chapter 144A in relation to health care provider definition.",
      "modified": [
        "Includes more entities under 144A as not being health care providers."
      ]
    },
    "citation": "144A",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Mention of supportive or health supervision services according to section 157.17.",
      "modified": []
    },
    "citation": "157.17",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Clarifies the exclusion of home health agencies from the definition of health care provider under rule 9505.0175, subpart 15.",
      "modified": []
    },
    "citation": "9505.0175",
    "subdivision": "subpart 15"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Definition for personal care services excluded in the concept of health care provider.",
      "modified": []
    },
    "citation": "9505.0335",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Defines the exclusion of personal care services under rule 9505.0360.",
      "modified": []
    },
    "citation": "9505.0360",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Reference to licensed supervision living facilities rules that are excluded from being health care providers.",
      "modified": []
    },
    "citation": "4665.0100",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Definition involving boarding care homes excluded from the definition of health care provider.",
      "modified": []
    },
    "citation": "4655.0100",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This rule relates to adult foster homes excluded from being health care providers.",
      "modified": []
    },
    "citation": "9555.5105",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Exclusion of adult day care centers from the health care provider definition influenced by rule 9555.9600.",
      "modified": []
    },
    "citation": "9555.9600",
    "subdivision": ""
  }
]

Progress through the legislative process

17%
In Committee

Sponsors