(a) For each calendar quarter commencing on or after July 1, 2011, and prior to July 1, 2017, there is hereby imposed a tax on the net patient revenue of each hospital in this state to be paid each calendar quarter. The rate of such tax shall be up to the maximum rate allowed under federal law and in conformance with the state budget adopted by the General Assembly. Each hospital shall be promptly notified of the amount of tax due by the Commissioner of Social Services. The Commissioner of Social Services shall determine the base year on which such tax shall be assessed in order to ensure conformance with the state budget adopted by the General Assembly. The Commissioner of Social Services may, in consultation with the Secretary of the Office of Policy and Management and in accordance with federal law, exempt a hospital from the tax on payment earned for the provision of outpatient services based on financial hardship. Effective July 1, 2012, and for the succeeding fifteen months, the rates of such tax, the base year on which such tax shall be assessed, and the hospitals exempt from the outpatient portion of the tax based on financial hardship shall be the same tax rates, base year and outpatient exemption for hardship in effect on January 1, 2012.

(b) Each hospital shall, on or before the last day of January, April, July and October of each year, render to the Commissioner of Revenue Services a return, on forms prescribed or furnished by the Commissioner of Revenue Services and signed by one of its principal officers, stating specifically the name and location of such hospital, and the amount of its net patient revenue as determined by the Commissioner of Social Services. Payment shall be made with such return. Each hospital shall file such return electronically with the department and make such payment by electronic funds transfer in the manner provided by chapter 228g, irrespective of whether the hospital would otherwise have been required to file such return electronically or to make such payment by electronic funds transfer under the provisions of chapter 228g.

(c) Notwithstanding any other provision of law, for each calendar quarter commencing on or after July 1, 2015, and prior to January 1, 2016, the amount of tax credit or credits otherwise allowable against the taxes imposed under sections 12-263a to 12-263e, inclusive, and 12-263i shall not exceed fifty and one one-hundredths per cent of the amount of tax due under sections 12-263a to 12-263e, inclusive, and 12-263i with respect to such calendar quarter prior to the application of such credit or credits. For each calendar quarter commencing on or after January 1, 2016, and prior to January 1, 2017, the amount of tax credit or credits otherwise allowable against the taxes imposed under sections 12-263a to 12-263e, inclusive, and 12-263i shall not exceed fifty-five per cent of the amount of tax due under sections 12-263a to 12-263e, inclusive, and 12-263i with respect to such calendar quarter prior to the application of such credit or credits. For each calendar quarter commencing on or after January 1, 2017, and prior to January 1, 2018, the amount of tax credit or credits otherwise allowable against the taxes imposed under sections 12-263a to 12-263e, inclusive, and 12-263i shall not exceed sixty per cent of the amount of tax due under sections 12-263a to 12-263e, inclusive, and 12-263i with respect to such calendar quarter prior to the application of such credit or credits. For each calendar quarter commencing on or after January 1, 2018, and prior to January 1, 2019, the amount of tax credit or credits otherwise allowable against the taxes imposed under sections 12-263a to 12-263e, inclusive, and 12-263i shall not exceed sixty-five per cent of the amount of tax due under sections 12-263a to 12-263e, inclusive, and 12-263i with respect to such calendar quarter prior to the application of such credit or credits. For each calendar quarter commencing on or after January 1, 2019, the amount of tax credit or credits otherwise allowable against the taxes imposed under sections 12-263a to 12-263e, inclusive, and 12-263i shall not exceed seventy per cent of the amount of tax due under sections 12-263a to 12-263e, inclusive, and 12-263i with respect to such calendar quarter prior to the application of such credit or credits.

(P.A. 94-9, S. 22, 41; P.A. 96-144, S. 2, 5; P.A. 98-244, S. 12, 35; P.A. 99-173, S. 32, 65; P.A. 00-170, S. 9, 42; P.A. 11-6, S. 146; 11-44, S. 103; 11-61, S. 79; June 12 Sp. Sess. P.A. 12-1, S. 4; P.A. 15-244, S. 89; Dec. Sp. Sess. P.A. 15-1, S. 30; May Sp. Sess. P.A. 16-3, S. 120; June Sp. Sess. P.A. 17-2, S. 611.)

History: P.A. 94-9 effective April 1, 1994; P.A. 96-144 reduced tax from 11% to 9.25% on October 1, 1996, to 8.25% on October 1, 1997, to 7.25% on October 1, 1998, and to 6.25% on and after October 1, 1999, effective May 29, 1996; P.A. 98-244 eliminated notarization requirement, effective June 8, 1998, and applicable to calendar quarters commencing on or after October 1, 1998; P.A. 99-173 reduced rate from 6.25% to 4.5% in Subdiv. (5), effective June 23, 1999, and applicable to calendar quarters commencing on or after October 1, 1999; P.A. 00-170 discontinued to the tax for calendar quarters commencing on or after April 1, 2000, effective May 26, 2000; P.A. 11-6 deleted provisions imposing tax on gross earnings and suspending said tax after April 1, 2000, added Subsec. (a) re tax on net patient revenue, designated existing provisions re timing and form of return as Subsec. (b), changed language therein re gross earnings to language re net patient revenue and added requirement re electronic filing and payment, effective July 1, 2011, and applicable to calendar quarters commencing on or after that date; P.A. 11-44 amended Subsec. (a) by replacing tax rate of 4.06% with provision requiring rate to be up to maximum allowed under federal law and adding provisions re base year and exemption from tax, effective July 1, 2011, and applicable to calendar quarters commencing on or after that date; P.A. 11-61 amended Subsec. (b) by changing “for the calendar quarter ending the last day of the preceding month” to “as determined by the Commissioner of Social Services” re statement of amount of net patient revenue on return, effective July 1, 2011, and applicable to calendar quarters commencing on or after that date; June 12 Sp. Sess. P.A. 12-1 amended Subsec. (a) by adding provision re tax rates, base year and outpatient exemption effective July 1, 2012, and for succeeding 15 months, effective June 15, 2012; P.A. 15-244 added Subsec. (c) re 50.01 per cent limit on allowable credits against tax imposed under chapter, effective July 1, 2015; Dec. Sp. Sess. P.A. 15-1 amended Subsec. (c) by adding references to taxes imposed under Secs. 12-263a to 12-263e and 12-263i, adding provisions re caps on allowable tax credits for calendar quarters commencing on or after January 1, 2016, January 1, 2017, January 1, 2018, and January 1, 2019, and making conforming changes, effective December 29, 2015, and applicable to calendar quarters commencing on or after January 1, 2016; May Sp. Sess. P.A. 16-3 amended Subsec. (a) by adding provisions re rate of tax to be in conformance with state budget, hospital to be promptly notified of amount of tax due by Commissioner of Social Services and commissioner to determine base year on which tax is to be assessed to ensure conformance with state budget, effective June 2, 2016, and applicable to calendar quarters commencing on or after July 1, 2011; June Sp. Sess. P.A. 17-2 amended Subsec. (a) by adding “and prior to July 1, 2017,” re imposition of tax, effective October 31, 2017.