Report Title:

For-profit Hospitals; General Excise Tax Exemption

Description:

Provides a general excise tax exemption for six years for payments received from Medicaid or Medicare by a for-profit hospital, that provides services to an annual patient population consisting of sixty per cent or more uninsured, medicaid, and medicare patients.  Sunset June 30, 2014.  (HB2759 HD2)

HOUSE OF REPRESENTATIVES	H.B. NO.	2759
TWENTY-FOURTH LEGISLATURE, 2008		H.D. 2
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO GENERAL EXCISE TAX.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The purpose of this Act is to provide a six-year exemption from general excise taxes for payments received from medicaid or medicare by any for-profit hospital group that annually provides services for patients, of which sixty per cent or more are uninsured, medicaid, and medicare patients.

     The legislature intends that without exception, all gross income derived from medicaid or medicare payments by a for-profit hospital group be exempt from the general excise tax.

     SECTION 2.  Chapter 237, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§237-     For-profit hospitals, infirmaries, and sanitaria; exemption. Notwithstanding any other law to the contrary, this chapter shall not apply to gross income received from medicaid or medicare of any for-profit hospital group that annually provides services for patients, of which sixty per cent or more are uninsured, medicaid, and medicare patients."

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect on July 1, 2020; provided that this Act shall be repealed on June 30, 2014.