An Act To Restore the Health Care Provider Tax for Nursing Homes to 6 Percent
Maine Legislature, Session 125, LD 1016
Committee: Taxation
Sponsors: STRANG BURGESS, CRAVEN, EVES, FOSSEL, HARMON, KNIGHT, PETERSON, SANBORN, RAYE, ROSEN
Amends: 36 MRSA §2872, 36 MRSA §2873

Legislative Document 
No. 1016 
H.P. 752 
House of Representatives, March 10, 2011 
An Act To Restore the Health Care Provider Tax for Nursing 
Homes to 6 Percent 
Reference to the Committee on Taxation suggested and ordered printed. 
HEATHER J.R. PRIEST 
Clerk 
Presented by Representative STRANG BURGESS of Cumberland. 
Cosponsored by Senator CRAVEN of Androscoggin and 
Representatives: EVES of North Berwick, FOSSEL of Alna, HARMON of Palermo, KNIGHT 
of Livermore Falls, PETERSON of Rumford, SANBORN of Gorham, Senators: President 
RAYE of Washington, ROSEN of Hancock. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  36 MRSA §2872, sub-§2, ¶C, as amended by PL 2007, c. 539, Pt. X, §2, 
is further amended to read: 
C.  For whole or partial facility fiscal years beginning on or after July 1, 2003 and 
before January 1, 2008, the tax imposed against each nursing home is equal to 6% of 
its annual net operating revenue for the corresponding whole or partial facility fiscal 
year; and 
Sec. 2.  36 MRSA §2872, sub-§2, ¶D, as enacted by PL 2007, c. 539, Pt. X, §2, is 
amended to read: 
D.  Beginning For whole or partial facility fiscal years beginning on or after January 
1, 2008 for any partial facility fiscal year and for whole facility fiscal years beginning 
on or after January 1, 2008 and before October 1, 2011, the tax imposed against each 
nursing home is equal to 5.5% of its annual net operating revenue for the 
corresponding whole or partial facility fiscal year.; and 
Sec. 3.  36 MRSA §2872, sub-§2, ¶E is enacted to read: 
E.  Beginning October 1, 2011 for any partial facility fiscal year and for whole 
facility fiscal years beginning on or after October 1, 2011, the tax imposed against 
each nursing home is equal to 6% of its annual net operating revenue for the 
corresponding whole or partial facility fiscal year. 
Sec. 4.  36 MRSA §2873, sub-§4, as enacted by PL 2001, c. 714, Pt. CC, §3 and 
affected by §8 and amended by PL 2003, c. 689, Pt. B, §§6 and 7, is further amended to 
read: 
4.  Application of revenues.  Revenues derived by the tax imposed by this chapter 
must be credited to a General Fund suspense account.  On the last day of each month, the 
State Controller shall make the following transfers: 
A.  All Beginning October 1, 2011, all revenues received by the assessor during the 
month pursuant to this chapter from nursing homes net of refunds must be credited to 
the Nursing Facilities Other Special Revenue funds account in the Department of 
Health and Human Services.  The Commissioner of Health and Human Services is 
authorized to make revenue  transfers from the Nursing Facilities Other Special 
Revenue funds account to the Medical Care - Payments to Providers Other Special 
Revenue funds account and the Long Term Care - Human Services Other Special 
Revenue funds account in amounts not to exceed legislative allocations in any fiscal 
year and all revenues credited to such account must be applied to provide 
cost-of-living increases to MaineCare reimbursement to nursing homes and to 
medical and remedial private nonmedical institutions that are reimbursed room and 
board costs and certain other allowable costs under rules adopted by the Department 
of Health and Human Services; and 
B.  All revenues received by the assessor during the month pursuant to this chapter 
from residential treatment facilities net of refunds must be credited to the Residential 
Treatment Facilities Assessment Other Special Revenue funds account in the 
Department of Health and Human Services. 
Notwithstanding the provisions of Public Law 2007, chapter 240, Part X, section 2, 
Public Law 2009, chapter 213, Part SSSS, section 1 or any other provision of law, any 
available balances in the accounts under this subsection may not be transferred between 
accounts by financial order or otherwise. 
SUMMARY 
Federal law permits states to use provider-specific taxes to fund their state shares of 
Medicaid expenses subject to certain limitations.  This bill amends existing provisions 
effective October 1, 2011, increasing the provider tax rate applicable to nursing home 
from 5.5% to 6%, consistent with applicable federal requirements, and repealing 
authorization for the Commissioner of Health and Human Services to transfer funds 
received from nursing facilities that are credited to the Nursing Facility Other Special 
Revenue funds account in the Department of Health and Human Services. 
It requires that funds received from this increased provider tax be applied to provide 
cost-of-living increases to MaineCare reimbursement to nursing homes and medical and 
remedial private nonmedical institutions that are reimbursed room and board costs and 
certain other allowable costs under rules adopted by the Department of Health and 
Human Services and may not be transferred for other purposes.