SB 01107 Summary

• Repeals the 6% tax on ambulatory surgical center gross receipts, effective July 1, 2021, which had been imposed since October 1, 2015 with various exemptions for Medicaid, Medicare, and the first $1-1.5 million in receipts.

• Establishes a new sales tax on ambulatory surgical center services effective July 1, 2021, defined as facility fees only (excluding surgical procedures, physician services, anesthesia, radiology, diagnostics, and ambulance services).

• Exempts the first $1.5 million in annual gross receipts (excluding Medicaid and Medicare), all Medicaid and Medicare payments, payer discounts, charity care, bad debts, and tangible property costs like implants and drugs from the new sales tax.

• Creates tax credits against the sales tax for ambulatory surgical centers equal to 50% of Medicaid payments plus 25% of state health plan payments, with excess credits refundable with interest.

• Allows ambulatory surgical centers and certain service providers to pay sales taxes based on when income or gross receipts are received, without penalty or interest, rather than when services are rendered.