TITLE V
TAXATION

Chapter 84-A
MEDICAID ENHANCEMENT TAX

Section 84-A:1

84-A:1 Definitions. –
In this chapter:
I. "Commissioner" means the commissioner of revenue administration.
II. [Repealed.]
III. "Hospital" means general hospitals required to be licensed under RSA 151 that provide inpatient and outpatient hospital services, but not including government facilities.
III-a. "Inpatient hospital services" means those services that are classified as inpatient hospital services for purposes of section 1903(w) of the Social Security Act, and are defined in 42 C.F.R. section 440.10, regardless of the patient receiving the service or the payor for that service.
IV. "Medicaid enhancement tax" means the tax imposed upon net patient services revenue pursuant to this chapter.
IV-a. "Net patient services revenue" means the gross charges of the hospital for inpatient and outpatient hospital services less any deducted amounts for bad debts, charity care, and payor discounts. "Net patient services revenue" shall include revenues received from the state's uncompensated care account and revenues received from all payers of inpatient and outpatient hospital services.
IV-b. "Outpatient hospital services" means those services that are classified as outpatient hospital services for purposes of section 1903(w) of the Social Security Act, and are defined in 42 C.F.R. section 440.20, regardless of the patient receiving the service or the payor for that service.
V. "Taxable period" means a 12-month period beginning July 1 and ending June 30.
VI. "Uncompensated care and Medicaid fund" means the fund established in RSA 167:64 to reimburse hospitals for costs associated with uncompensated care and shortfalls in publicly funded programs.

Source. 1991, 299:2. 1993, 4:4. 2004, 260:3, 4, 10. 2011, 224:38, 39, eff. July 1, 2011. 2014, 158:1, eff. July 1, 2014; 158:2-4, 11, eff. June 30, 2014.

Section 84-A:2

84-A:2 Imposition of Tax. –
I. For the taxable period ending June 30, 2014, a tax is imposed at a rate of 5.5 percent upon the net patient services revenue of every hospital for the hospital's fiscal year ending during the first full calendar year preceding the taxable period.
II. For the taxable period ending June 30, 2015, a tax is imposed at a rate of 5.5 percent upon the net patient services revenue of every hospital for the hospital's fiscal year ending during the calendar year in which the taxable period begins.
III. For the taxable period ending June 30, 2016, a tax is imposed at a rate of 5.45 percent upon the net patient services revenue of every hospital for the hospital's fiscal year ending during the calendar year in which the taxable period begins.
IV. For the taxable period ending June 30, 2017, a tax is imposed at a rate of 5.4 percent upon the net patient services revenue of every hospital for the hospital's fiscal year ending during the calendar year in which the taxable period begins.
V. For the taxable period ending June 30, 2018, and for every taxable period thereafter, a tax is imposed at a rate of 5.4 percent upon the net patient services revenue of every hospital for the hospital's fiscal year ending during the calendar year in which the taxable period begins.

Source. 1991, 299:2. 1993, 4:5. 1998, 352:1. 2003, 319:36. 2004, 260:2. 2007, 263:50, eff. Jan. 1, 2008. 2014, 158:5, eff. June 30, 2014. 2018, 162:34, eff. June 6, 2018.

Section 84-A:3

84-A:3 Tax Due; Offset for Past Due Payments. –
I. For the taxable period beginning July 1, 2014, and for every taxable period thereafter, each hospital shall pay 100 percent of its Medicaid enhancement tax due and payable for the taxable period no later than the fifteenth day of April.
II. Payments due under this section which are past due from any hospital by more than 60 days may be collected from such hospital by means of offset against any amounts due and payable to such hospital by any program operated by the department of health and human services including, but not limited to, programs of medical assistance authorized under the Title XIX or XXI of the Social Security Act and operated by the department of health and human services, or any other state program under which the state purchases services from such a hospital. The department of revenue administration shall establish a plan for reporting the necessary information to the department of health and human services or other appropriate state department to collect offsets under this section.

Source. 1991, 299:2; 390:3. 1993, 4:6, 7. 2010, Sp. Sess., 1:12, eff. July 1, 2010. 2014, 158:6, eff. July 1, 2014.

Section 84-A:4

84-A:4 Returns. – Every hospital shall on or before the fifteenth day of April in the taxable period make a return to the commissioner. The commissioner shall adopt rules, pursuant to RSA 541-A, relative to the form of such return and the data which it must contain for the correct computation of net patient services revenue and the tax assessed upon such amount. All returns shall be signed by the taxpayer or by its authorized representative, subject to the pains and penalties of perjury. If such return shows an overpayment of the tax due, the commissioner shall refund or credit the overpayment to the hospital in accordance with RSA 21-J:28-a. Every hospital shall on or before January 15 in the taxable period make a nonbinding estimate of its projected tax payment.

Source. 1991, 299:2. 2004, 260:5, eff. July 1, 2005. 2014, 158:7, eff. July 1, 2014.

Section 84-A:5

84-A:5 Method of Payment and Deposit of Tax. –
I. The payments required by RSA 84-A:3 shall be made by electronic transfer of moneys to the state treasurer and deposited to the uncompensated care and Medicaid fund established by RSA 167:64.
II. The state treasurer is authorized to establish an account or accounts and to take all steps necessary to facilitate the electronic transfer of moneys required in paragraph I. The state treasurer shall provide the commissioner a record of any moneys so transferred and deposited.

Source. 1991, 299:2. 1993, 4:8, eff. July 1, 1993. 2014, 158:8, eff. July 1, 2014.

Section 84-A:6

84-A:6 Additional Returns. – When the commissioner has reason to believe that a hospital has failed to file a return or to include any part of its net patient services revenue in a filed return, the commissioner may require the hospital to file a return or a supplementary return showing such additional information as the commissioner prescribes. Upon the receipt of the supplementary return, or if none is received within the time set by the commissioner, the commissioner may find and assess the amount due upon the information that is available. The making of such additional return does not relieve the hospital of any penalty for failure to make a correct original return or relieve it from liability for interest imposed under RSA 21-J:28 or any other additional charges imposed by the commissioner. This section shall not be construed to modify the statute of limitations provided in RSA 21-J:29.

Source. 1991, 299:2. 2004, 260:6, eff. July 1, 2005.

Section 84-A:7

84-A:7 Extension of Time for Returns. – For good cause, the commissioner may extend the time within which a hospital is required to file a return, and if such return is filed during the period of extension no penalty or late filing charge may be imposed for failure to file the return at the time required by this chapter, but the hospital shall be liable for interest and late payment charges as prescribed in RSA 21-J:28 or 33. Failure to file the return during the period of the extension shall void the extension.