Source: http://www.legis.state.wv.us/Fiscalnotes/FN(2)/fnsubmit_recordview1.cfm?RecordID=20055369
Timestamp: 2015-11-26 12:56:43
Document Index: 72112012

Matched Legal Cases: ['§11', '§11', '§11', '§11', '§11', '§11', '§11', '§11']

Date Requested:February 21, 2011Time Requested:02:03 PM
2011R2855
PRIVILEGE TAX FUND(S) Medicaid State Share Fund Sources of Revenue
According to our interpretation, the proposed changes to WV Code §11-13A-3 would eliminate the Severance Tax rate on gross receipts attributable to the provision of behavioral health services. The elimination of the Severance Tax on behavioral health services will result in a reduction in the Medicaid State Share Fund of roughly $12 million per year. Additionally, unless alternative matching funds are secured, the reduction in the Medicaid State Share Fund attributable to the elimination of the Severance Tax on behavioral health services will result in a reduction in Federal Funds of roughly three times the tax reduction. The reduction in matching funds attributable to the elimination of the Severance Tax on behavioral health services would be roughly $36 million per year.	The proposed revisions to WV Code §11-27-18 to include “behavioral health services” and to provide a definition of the term would, according to our interpretation, subject behavioral health Services to the Health Care Provider Tax levied via that section. However, existing WV Code §11-27-36(j) eliminated the tax imposed under WV Code §11-27-18 effective July 1, 2010 thus the proposed change to WV Code §11-27-18 would have no revenue impact.
The proposed revisions to WV Code §11-27-18 to include “behavioral health services” and to provide a definition of the term would appear to subject behavioral health Services to the Health Care Provider Tax levied via that section. However, existing WV Code §11-27-36(j) eliminated the tax imposed under WV Code §11-27-18 effective July 1, 2010. It is not clear if this was the intent of the Legislation. In addition, federal rules regarding permissive services that may be taxed under a broad-based Health Care Provider Tax do not include behavioral health services among the permissive list. Person submitting Fiscal Note: