_______________________________________________
SUBSTITUTE
HOUSE BILL 3096
_______________________________________________
AS
AMENDED BY THE SENATE
Passed
Legislature - 1998 Regular Session
State of Washington 55th
Legislature 1998 Regular Session
By
Read first time 02/02/98.
Referred to Committee on .
Declaring
the state's preemption of excise or privilege taxes on health care services.
AN
ACT Relating to declaring the state's preemption of the field of excise or
privilege taxes on health maintenance organizations and health care service
contractors; and amending RCW 48.14.0201.
BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
48.14.0201 and 1997 c 154 s 1 are each amended to read as follows:
(1)
As used in this section, "taxpayer" means a health maintenance
organization, as defined in RCW 48.46.020, or a health care service contractor,
as defined in RCW 48.44.010.
(2)
Each taxpayer shall pay a tax on or before the first day of March of each year
to the state treasurer through the insurance commissioner's office. The tax
shall be equal to the total amount of all premiums and prepayments for health
care services received by the taxpayer during the preceding calendar year
multiplied by the rate of two percent.
(3)
Taxpayers shall prepay their tax obligations under this section. The minimum
amount of the prepayments shall be percentages of the taxpayer's tax obligation
for the preceding calendar year recomputed using the rate in effect for the current
year. For the prepayment of taxes due during the first calendar year, the
minimum amount of the prepayments shall be percentages of the taxpayer's tax
obligation that would have been due had the tax been in effect during the
previous calendar year. The tax prepayments shall be paid to the state
treasurer through the commissioner's office by the due dates and in the
following amounts:
(a)
On or before June 15, forty-five percent;
(b)
On or before September 15, twenty-five percent;
(c)
On or before December 15, twenty-five percent.
(4)
For good cause demonstrated in writing, the commissioner may approve an amount
smaller than the preceding calendar year's tax obligation as recomputed for
calculating the health maintenance organization's, health care service
contractor's, or certified health plan's prepayment obligations for the current
tax year.
(5)
Moneys collected under this section shall be deposited in the general fund
through March 31, 1996, and in the health services account under RCW 43.72.900
after March 31, 1996.
(6)
The taxes imposed in this section do not apply to:
(a)
Amounts received by any taxpayer from the United States or any instrumentality
thereof as prepayments for health care services provided under Title XVIII
(medicare) of the federal social security act.
(b)
Amounts received by any health care service contractor, as defined in RCW
48.44.010, as prepayments for health care services included within the
definition of practice of dentistry under RCW 18.32.020.
(7) Beginning January 1, 2000, the state does hereby preempt the
field of imposing excise or privilege taxes upon taxpayers and no county, city,
town, or other municipal subdivision shall have the right to impose any such
taxes upon such taxpayers. This subsection shall be limited to premiums and
payments for health benefit plans offered by health care service contractors
under chapter 48.44 RCW and health maintenance organizations under chapter
48.46 RCW. The preemption authorized by this subsection shall not impair the
ability of a county, city, town, or other municipal subdivision to impose
excise or privilege taxes upon the health care services directly delivered by
the employees of a health maintenance organization under chapter 48.46 RCW.
