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STATE OF RHODE ISLAND
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IN GENERAL ASSEMBLY
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JANUARY SESSION, A.D. 2013
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____________
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A N A C T
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RELATING TO TAXATION - THE OUTPATIENT HEALTH CARE FACILITY
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SURCHARGE
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Introduced By: Representatives Giarrusso, McLaughlin, Carnevale, Ackerman, and Costa
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Date Introduced: February 07, 2013
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Referred To: House Finance
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It is enacted by the General Assembly as follows:
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1-1
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SECTION 1. Chapter 44-64 of the General Laws entitled "The Outpatient Health Care
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Facility Surcharge" is hereby repealed in its entirety.
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1-3
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CHAPTER 44-64
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The Outpatient Health Care Facility Surcharge
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44-64-1. Short title. -- This chapter shall be known as "The Outpatient Health Care
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Facility Surcharge Act."
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1-7
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44-64-2. Definitions. -- The following words and phrases as used in this chapter have the
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following meaning:
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(1) "Administrator" means the tax administrator within the department of revenue.
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(2) "Gross patient revenue" means the gross amount received on a cash basis by the
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provider from all patient care and other gross operating income. However, charitable
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contributions, fund raising proceeds, and endowment support shall not be considered "gross
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patient revenue."
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(3) "Net patient services revenue" means the charges related to patient care services less
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(i) charges attributable to charity care, (ii) bad debt expenses, and (iii) contractual allowances.
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(4) "Person" means any individual, corporation, company, association, partnership, joint
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stock association, and the legal successor thereof.
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1-18
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(5) "Provider" means a licensed facility or operator, including a government facility or
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operator, subject to a surcharge under this chapter.
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2-1
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(6) "Surcharge" means the assessment that is imposed upon net patient revenue pursuant
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to this chapter.
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44-64-3. Imposition of surcharge -- Outpatient health care facility. -- (a) For the
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purposes of this section, an "outpatient health care facility" means a person or governmental unit
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that is licensed to establish, maintain, and operate a free-standing ambulatory surgery center or a
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physician ambulatory surgery center or a podiatry ambulatory surgery center, in accordance with
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chapter 17 of title 23.
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(b) A surcharge at a rate of two percent (2.0%) shall be imposed upon the net patient
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services revenue received each month by every outpatient health care facility. Every provider
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shall pay the monthly surcharge no later than the twenty-fifth (25th) day of the month following
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the month that the gross patient revenue is received. This surcharge shall be in addition to any
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2-12
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other authorized fees that have been assessed upon outpatient facilities.
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44-64-4. Returns. -- (a) Every provider shall, on or before the twenty-fifth (25th) day of
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2-14
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the month following the month that the gross patient revenue is received, make a return to the tax
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administrator.
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(b) The tax administrator is authorized to adopt rules relative to the form of the return
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and the data it must contain for the correct computation of gross patient revenue and the
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surcharge. All returns shall be signed by the provider or its authorized representative, subject to
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the penalties of perjury. If a return shows an overpayment of the surcharge due, the tax
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administrator shall refund or credit the overpayment to the provider.
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2-21
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(c) The tax administrator, for good cause shown, may extend the time within which a
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provider is required to file a return. If the return is filed during the period of extension, no penalty
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or late filing charge may be imposed for failure to file the return at the time required by this
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chapter, but the provider shall be liable for any interest as prescribed in this chapter. Failure to
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file the return during the period for the extension shall make the extension null and void.
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44-64-5. Set-off for delinquent payment of surcharge. -- If a provider shall fail to pay a
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surcharge within thirty (30) days of its due date, the tax administrator may request any agency of
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state government to set off the amount of the delinquency against any payment they might be due
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the provider from the agency and to remit any such payment to the tax administrator. Upon
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receipt of a request for set-off from the tax administrator, any agency of state government is
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authorized and empowered to set off the amount of any delinquency against any payment that is
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due the provider. The amount of set-off shall be credited against the surcharge due from the
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provider.
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44-64-6. Surcharge on available information -- Interest on delinquencies -- Penalties
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-- Collection powers. -- If any provider shall fail, within the time required by this chapter, to file
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a return, or shall file an insufficient or incorrect return, or shall not pay the surcharge imposed by
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this chapter when it is due, the tax administrator shall make an assessment based upon
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information that may be available, which assessment shall be payable upon demand and shall
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bear interest from the date when the surcharge should have been paid at the annual rate set forth
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in section 44-1-7 of the Rhode Island general laws, as amended. If any part of the surcharge is
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caused by the negligence or intentional disregard of the provisions of this chapter, a penalty of ten
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percent (10%) of the amount of the determination shall be added to the surcharge. The tax
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administrator shall collect the surcharge with interest in the same manner and with the same
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powers as are prescribed for collection of taxes in this title.
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44-64-7. Claims for refund -- Hearing upon denial. -- (a) Any provider, subject to the
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provisions of this chapter, may file a claim for refund with the tax administrator at any time
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within two (2) years after the surcharge has been paid. If the tax administrator shall determine
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that the surcharge has been overpaid, the tax administrator shall make a refund with interest from
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the date of overpayment.
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(b) Any provider aggrieved by an action of the tax administrator in determining the
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amount of any surcharge or penalty imposed under the provisions of this chapter may, within
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thirty (30) days after the notice of the action was mailed, apply to the tax administrator, for a
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hearing relative to the surcharge or penalty. The tax administrator shall fix a time and place for
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the hearing and shall so notify the provider.
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44-64-8. Hearing by tax administrator on application. -- Following hearing, if the tax
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administrator upholds the assessment of the surcharge, the amount owed shall be assessed
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together with any penalty or interest thereon.
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44-64-9. Appeals. -- Appeals from administrative orders or decisions made pursuant to
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any provisions of this chapter shall be to the sixth division district court pursuant to chapter 8 of
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title 8 of the Rhode Island general laws, as amended. The provider's right to appeal under this
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section shall be expressly made conditional upon prepayment of all surcharges, interest, and
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penalties, unless the provider moves for and is granted an exemption from the prepayment
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requirement, pursuant to section 8-8-26 of the Rhode Island general laws, as amended. Following
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3-64
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the appeal, if the court determines that the provider is entitled to a refund, the provider shall also
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3-65
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be paid interest on the refund at the rate provided in section 44-1-7.1 of the Rhode Island general
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laws, as amended.
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44-64-10. Provider records. -- Every provider shall:
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(1) Keep records as may be necessary to determine the amount of its liability under this
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chapter;
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(2) Preserve those records for the period of three (3) years following the date of filing of
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any return required by this chapter, or until any litigation or prosecution under this chapter has
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been completed; and
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(3) Make those records available for inspection upon demand by the tax administrator or
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his authorized agents at reasonable times during regular business hours.
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44-64-11. Method of payment and deposit of surcharge. -- (a) Payments required by
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this chapter may be made by electronic transfer of monies to the general treasurer for deposit in
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the general fund.
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(b) The general treasurer is authorized to establish necessary accounts and to take all
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steps necessary to facilitate the electronic transfer of monies. The general treasurer shall provide
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the tax administrator a record of any such monies transferred and deposited.
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44-64-12. Rules and regulations. -- The tax administrator is authorized to promulgate all
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necessary rules, regulations, and procedures, not inconsistent with state law and fiscal procedures,
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for the proper administration of this chapter and in order to carry out the provisions, policy, and
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purposes of this chapter.
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44-64-13. Severability. -- If any provision of this chapter or the application of this
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chapter to any person or circumstances is held invalid, that invalidity shall not affect other
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provisions or applications of the chapter that can be given effect without the invalid provision or
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application, and to this end the provisions of this chapter are declared to be severable.
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4-89
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SECTION 2. This act shall take effect upon passage.
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LC00904
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EXPLANATION
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BY THE LEGISLATIVE COUNCIL
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OF
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A N A C T
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RELATING TO TAXATION - THE OUTPATIENT HEALTH CARE FACILITY
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SURCHARGE
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***
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5-1
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This act would repeal the outpatient health care facility two percent (2%) surcharge tax.
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This act would take effect upon passage.
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LC00904
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