ID H0298

Revises the definition of "hospital" exempt from sales and use tax to mean only critical access hospitals as defined in 42 U.S.C. 1395x(mm), narrowing the previous broader exemption.

Requires hospitals not exempt from sales and use tax to accrue and remit use tax on their purchases to the state tax commission instead of paying sales tax.

Creates the Medicaid Expansion Dedicated Fund in the state treasury to receive use tax remittances from nonexempt hospitals.

Directs use tax funds collected from nonexempt hospitals to be applied toward funding medicaid eligibility expansion after covering refund claims and administrative costs.

Authorizes the state tax commission to establish the payment method for hospital use tax remittances and to promulgate rules necessary to implement the new fund provisions.