[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: 42CFR433.72]



[Page 89-90]

 

                         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.  433.72  Waiver provisions applicable to health care-related taxes.



    (a) Bases for requesting waiver. (1) A State may submit to CMS a 

request for a waiver if a health care-related tax does not meet any or 

all of the following:

    (i) The tax does not meet the broad based criteria specified in 

Sec.  433.68c); and/or

    (ii) The tax is not imposed uniformly but meets the criteria 

specified in Sec.  433.68(d)(2) or (d)(3).

    (2) When a tax that meets the criteria specified in paragraph (a)(1) 

of this section is imposed on more than one class of health care items 

or services, a separate waiver must be obtained for each class of health 

care items and services subject to the tax.

    (b) Waiver conditions. In order for CMS to approve a waiver request 

that would permit a State to receive tax revenue (within specified 

limitations) without a reduction in FFP, the State must demonstrate, to 

CMS's satisfaction, that its tax program meets all of the following 

requirements:

    (1) The net impact of the tax and any payments made to the provider 

by the State under the Medicaid program is generally redistributive, as 

described in Sec.  433.68(e);

    (2) The amount of the tax is not directly correlated to Medicaid 

payments; and

    (3) The tax program does not fall within the hold harmless 

provisions specified in Sec.  433.68(f).

    (c) Effective date. A waiver will be effective:

    (1) The date of enactment of the tax for programs in existence prior 

to August 13, 1993 or;



[[Page 90]]



    (2) For tax programs commencing on or after August 13, 1993, on the 

first day in the quarter in which the waiver is received by CMS.



[57 FR 55138, Nov. 24, 1992, as amended at 58 FR 43182, Aug. 13, 1993]