[Code of Federal Regulations]

[Title 42, Volume 4]

[Revised as of October 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 42CFR433.55]



[Page 81-82]

 

                         TITLE 42--PUBLIC HEALTH

 

  CHAPTER IV--CENTERS FOR MEDICARE & MEDICAID SERVICES, DEPARTMENT OF 

                  HEALTH AND HUMAN SERVICES (CONTINUED)

 

PART 433_STATE FISCAL ADMINISTRATION--Table of Contents

 

     Subpart B_General Administrative Requirements State Financial 

                              Participation

 

Sec.  433.55  Health care-related taxes defined.



    (a) A health care-related tax is a licensing fee, assessment, or 

other mandatory payment that is related to--

    (1) Health care items or services;

    (2) The provision of, or the authority to provide, the health care 

items or services; or

    (3) The payment for the health care items or services.

    (b) A tax will be considered to be related to health care items or 

services under paragraph (a)(1) of this section if at least 85 percent 

of the burden of the tax revenue falls on health care providers.

    (c) A tax is considered to be health care related if the tax is not 

limited to health care items or services, but the treatment of 

individuals or entities providing or paying for those health care items 

or services is different than the tax treatment provided to other 

individuals or entities.

    (d) A health care-related tax does not include payment of a criminal 

or civil



[[Page 82]]



fine or penalty, unless the fine or penalty was imposed instead of a 

tax.

    (e) Health care insurance premiums and health maintenance 

organization premiums paid by an individual or group to ensure coverage 

or enrollment are not considered to be payments for health care items 

and services for purposes of determining whether a health care-related 

tax exists.