Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS › Chapter 3 - TAX ADMINISTRATION › Subchapter V - FRANCHISE TAX › Section 3.587 - Margin: Total Revenue

Current through Reg. 49, No. 28; July 12, 2024
(a) Effective date.
				  The provisions of this section apply to franchise tax reports originally due on
				  or after January 1, 2008, except as otherwise noted.
(b) Definitions. The following words and
				  terms, when used in this section, shall have the following meanings, unless the
				  context clearly indicates otherwise.
(1)
				  Actual cost of uncompensated care--The amount determined by multiplying
				  Operating Expenses by the Uncompensated Care Ratio where:
(A) operating expenses are the amounts
				  reported on line 2 and line 21, Internal Revenue Service Form 1065 or the
				  amounts reported on line 2 and line 20, Internal Revenue Service Form 1120S or
				  the corresponding line items from any other federal form filed, less any items
				  that have already been subtracted from total revenue (e.g., bad
				  debts);
(B) uncompensated care
				  ratio means uncompensated care charges less partial payments divided by total
				  charges;
(C) uncompensated care
				  charges are the standard charges for health care services where the provider
				  has not received any payment or where the provider has received partial payment
				  that does not cover the cost of the health care provided to the patient.
				  Uncompensated care charges do not include any portion of a charge that the
				  health care provider has no right to collect under a private health care plan,
				  under an agreement with an individual for a specific amount or under the charge
				  limitations imposed by the programs described in subsection (e)(10)(A)(i) -
				  (iii) of this section;
(D) standard
				  charges must be comparable to the charges applied to services provided to all
				  patients of the health care provider;
(E) partial payment is an amount that has
				  been received toward uncompensated care charges that does not cover the cost of
				  the services provided;
(F) total
				  charges are charges for all health care services, including uncompensated
				  care;
(G) records that clearly
				  identify each patient, the procedure performed, and the standard charge for
				  such a service, as well as payments received from each patient must be
				  maintained by the health care provider for all uncompensated care;
(H) a corresponding adjustment must be made
				  to reduce the cost of goods sold deduction or the compensation deduction for
				  the portion of the cost of goods sold or compensation that has been excluded
				  from revenue:
(i) the cost of goods sold
				  deduction is reduced by subtracting the product of the cost of goods sold under
				  §
													3.588
				  of this title (relating to Margin: Cost of Goods Sold) multiplied by the
				  uncompensated care ratio;
(ii) the
				  compensation deduction is reduced by subtracting the product of the
				  compensation and benefits amounts under §
													3.589 of
				  this title (relating to Margin: Compensation) multiplied by the uncompensated
				  care ratio.