An Act To Improve the Fairness of the Health Care Provider Tax and to Ensure Fair Implementation of Health Care Reimbursement Reforms LR 1304(02)
Maine Legislature, Session 121, LD 1293
Committee Amendment CA_A_S220 (Senate)
Amends: 36 MRSA §2871, 36 MRSA §2873

COMMITTEE AMENDMENT "A" to S.P. 424, L.D. 1293, Bill, "An 
Act To Improve the Fairness of the Health Care Provider Tax and 
To 
Ensure 
Fair 
Implementation 
of 
Health 
Care 
Reimbursement 
Reforms" 
Amend the bill by striking out all of sections 1 to 3 and 
inserting in their place the following: 
'Sec. 1. 36 MRSA §2871, sub-§2, as enacted by PL 2001, c. 714, 
Pt. CC, §3 and affected by §8, is amended to read: 
2. 
Annua1 net operatinq revenue. 
"Annual net operating 
revenue" means gross charges less any amounts a;l,;l,9was;l,e recorded 
as bad debts, charity care or payer discounts in accordance with 
generally accepted accounting principles.' 
Further amend the bill in section 7 in that part designated 
"§2872." in subsection 1 in paragraph C in the last line (page 3, 
line 31 in L.D.) by striking out the following: 
"each full" and 
inserting in its place the following: 
'the corresponding' 
Further amend the bill in section 7 in that part designated 
"§2872." in subsection 2 in paragraph C in the 3rd line (page 3, 
line 49 in L.D.) by striking out the following: 
"each full" and 
inserting in its place the following: 
'the corresponding' 
Further amend the bill by striking out all of section 8 and 
inserting in its place the following: 
'Sec. 8. 36 MRSA §2873, sub-§I, as enacted by PL 2001, c. 714, 
Pt. CC, §3 and affected by §8, is amended to read: 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT .. A .. to S.P. 424, L.D. 1293 
1. 
Month1y returns required; 
payment of estimated tax 
1iabi1ity. 
On or before the 15th day of each month, each person 
subject to the tax imposed by this chapter shall submit to the 
assessor a 
return on a 
form prescribed and furnished by the 
assessor. 
Each return must be accompanied by a payment of an 
amount equal to 1/12 of the person's estimated tax liability for 
the entire current state fiscal year or facility fiscal year 2LL 
in the case of 
a 
facility taxed on the basis of a partial 
facility fiscal year after June 30. 2003. an amount equal to a 
fraction of the estimated liability in which the denominator is 
the number of months remaining in the facility fiscal year and 
the numerator is one. 
A person may estimate its tax liability 
for the current state fiscal year or facility fiscal year by 
applying the tax rates provided by section 2872 to the most 
recent state fiscal year or facility fiscal year for 
which 
~e*evaB~-~aKa&le-~~eAQe6-~~~-~~~~~~-aBG-a~e-Be 
*eB~e~--open--~e--aud4-t--aEi:jli6~eB~--<H:'--ee~~ee~:ieB a Medicaid cost 
report has been finally settled and is no longer open to audit 
adjustment or correction, 
f~ev4.Eie"-t.Aa~ as long as the fiscal 
year in question began no earlier than 3 years prior to the 
beginning of the current fiscal year; in the event that the 
information necessary to prepare this estimate is not available. 
an estimate may be prepared on the basis of the reconciliation 
return most recently submitted or. if the first such return has 
not yet been filed. then on the basis of the revenues formally 
reported by the facility in accordance with generally accepted 
accounting 
principles. 
Regardless 
of 
the 
method 
used 
for 
preparing the estimate. the estimate may include adjustments to 
reflect changes in the number of licensed or certified beds or 
extraordinary changes in payment rates. 
Once a taxpayer has made 
its first monthly payment for a state fiscal year or facility 
fiscal year pursuant to this subsection, the monthly amount must 
remain fixed throughout the fiscal year unless the assessor 
authorizes 
a 
change. 
If the person's estimated 
annual 
tax 
liability as reported and paid pursuant to this subsection does 
not equal the tax imposed on that person by section 2872, any 
adjustments necessary to reconcile the estimated tax with the 
correct tax amount must be made pursuant to subsection 2.' 
Further amend the bill by striking out all of sections 10, 
11, 12 and 13 and inserting in their place the following: 
'Sec. 10. 36 MRSA §2873, sub-§3, as enacted by PL 2001, c. 
714, Pt. CC, §3 and affected by §8, is amended to read: 
3. 
Audit period to remain open; accrua1 of pena1ties and 
interest. 
Notwithstanding any other provision of law, the tax 
imposed against a person by section 2872 for any fiscal year 
remains open to audit and further assessment by the assessor 
until 
~he--pEH"-son-'-s--~aHa:e*e--l"~-€e~--t.-hat.--€:i6ea.l-~--have 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to S.P. 424, L.D. 1293 
aeeB--f-i-na*J..-¥--4eE-eFmiBea completion of the audit of the Medicaid 
cost report or reports for the fiscal year. 
Any underestimates 
of tax liability reported and paid pursuant to subsection 1 are 
subject to an assessment of interest at the rate provided in 
section 186 from the date or dates of underpayment until payment 
is made, unless the estimated tax liability was calculated ay 
app*yiB~-~-~~--~a~e6--~~~~-~-~e€~~&B--6S76-~~-~~-mest 
FeeeBt-~~~€a~-~--~--waiea-~eJevaB~-~~~~~~~~-aeeB 
~iBa:U·y-4e~e~miBea in compliance with the standards provided in 
subsection 1, in which case no interest may accrue prior to the 
date on which the reconciliation return for the year is due. 
Any 
amount 
of 
tax that is 
reported 
on 
a 
reconciliation return 
required 
by 
subsection 
but 
not 
paid 
at 
the 
time 
the 
reconciliation return is filed is subject to the accrual of 
interest as provided by section 186, as well as to any applicable 
provisions of section l87-B, including, without limitation, the 
penalty provided by section l87-B, subsection 2 for failure to 
pay a tax. 
Sec. 
11. 
Long-term care financing. 
The 
Joint 
Standing 
Committee on Health and Human Services may consider the issue of 
long-term care financing, including dedication to long-term care 
of all or any portion of the health care provider tax and 
revenues 
attributable 
to 
that 
tax 
under 
the 
Maine 
Revised 
Statutes, 
Title 
36, 
section 
2873 
and statutory requirements 
specifying 
enhanced 
reimbursement 
levels 
for 
long-term 
care 
providers, 
during 
the 
Second 
Regular 
Session 
of 
the 
l2lst 
Legislature and may report out a bill on long-term care financing 
to the Second Regular Session of the 121st Legislature.' 
Further amend the bill by relettering 
nonconsecutive 
Part 
letter 
or 
section 
consecutively. 
or renumber ing any 
number 
to 
read 
S~RY 
This amendment removes from the bill the provisions that 
would 
have 
dedicated most of the health care provider 
tax 
revenues 
to 
long-term 
care 
purposes. 
It corrects 
language 
regarding aUditing 
and 
accounting procedures. 
The 
amendment 
authorizes the Joint Standing Committee 
on Health and Human 
Services to report out a bill on long-term care financing to the 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Fiscal Detail and Notes 
Revised: 05/19/03 ~ac:.. 
l2lst Maine Legislature 
Office of Fiscal and Program Review 
LD 1293 
An Act To Improve the Fairness of the Health Care Provider Tax and to 
Ensure Fair Implementation of Health Care Reimbursement Reforms 
LR 1304(02) 
Fiscal Note for Bill as Amended by Committee Amendment ~"..s .'}..lJ. 
Committee: Health and Human Services 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - General Fund 
Any additional costs to Maine Revenue Services and the Department of Human Services as a result of this bill can t 
absorbed utilizing existing budgeted resources. 
LR1304(2) - Fiscal Note - Page 1 of 1