Keep your eye on this one …
ICYMI: During the 2019 legislative session in Minnesota, the Healthcare Provider Tax was on the budgetary chopping block and set to expire at the end of 2019. This tax will not expire. The compromise was that it will be reduced from 2% to 1.8% after December 31, 2019.
If you are a healthcare provider in Minnesota, you have been collecting and paying a 2% tax. The law requiring collection and payment of this healthcare provider tax expires at the end of 2019, unless action is taken to extend it. However, there is a big debate at the State Capital. The Governor wants to use some of the tax revenue on health and human services. Forgoing that revenue means a 10% cut to the HHS budget. Those in favor of allowing the healthcare provider tax to expire, which was approved by Governor Mark Dayton, suggest that the money can be found in the estimated $1B budget surplus. And, there are a number of additional arguments on both sides of the equation. Keep your eye on this one as the health and human services budget makes its way through the legislative process. And, as always, contact your elected representatives if you want to voice your opinion.