Current Status Introducing Body:Senate Bill Number:1311 Primary Sponsor:Hayes Committee Number:06 Type of Legislation:GB Subject:Hospital license tax Residing Body:Senate Current Committee:Finance Computer Document Number:DKA/3337HTC.94 Introduced Date:19940330 Last History Body:Senate Last History Date:19940330 Last History Type:Introduced, read first time, referred to Committee Scope of Legislation:Statewide All Sponsors:Hayes Type of Legislation:General Bill
Bill Body Date Action Description CMN Leg Involved
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1311 Senate 19940330 Introduced, read first time, 06
referred to Committee
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TO AMEND SECTION 12-23-810, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE GENERAL HOSPITAL LICENSE TAX, SO AS TO PROVIDE THAT THE TAX IS IMPOSED BASED ON THE TOTAL EXPENDITURES OF EACH HOSPITAL DOING BUSINESS IN THIS STATE AS A PERCENTAGE OF THE TOTAL EXPENDITURES OF HOSPITALS DOING BUSINESS IN THIS STATE, TO EXTEND REQUIRED REVENUE AMOUNTS OF THE TAX TO ALL HOSPITALS DOING BUSINESS IN THIS STATE, AND TO REQUIRE ALL HOSPITALS TO REPORT ANNUAL TOTAL EXPENDITURES BY MARCH FIRST OF EACH YEAR TO THE OFFICE OF RESEARCH AND STATISTICAL SERVICES OF THE STATE BUDGET AND CONTROL BOARD.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-23-810 of the 1976 Code, as last amended by Act 501 of 1992, is further amended to read:
"Section 12-23-810. (A) Every hospital licensed as a general hospital by the Department of Health and Environmental Control is subject to the payment of an excise, license, or privilege tax. Each hospital's tax must be based on the total expenditures of each hospital as a percentage of total hospital expenditures statewide.
(B) Effective July 1, 1992, every hospital licensed as a general hospital in another state is subject to the payment of an excise, license, or privilege tax if the hospital does business in South Carolina. A hospital is considered to be doing business in this State if the hospital, or the firm, corporation, association, or partnership which owns or operates the hospital, either directly or through a subsidiary corporation, establishes a physical presence in the State by owning, leasing, subleasing, or by any other means arranges to provide space to engage in or transact activity for financial profit or gain. Each hospital's tax must be based on the total number of patient days from the prior year attributed to South Carolina residents, excluding Medicaid patient days, adjusted by the hospital's ratio of total net to gross patient revenue. Net patient revenue for purposes of this formula is defined as gross patient revenue less contractual allowances, bad debts, uncompensated indigent care, property taxes, and state and federal income taxes.
(C) The hospital tax imposed by this section is based on the total expenditures attributable to this State by each hospital doing business in this State as a percentage of the total expenditures attributable to this State by all hospitals doing business in this State. The tax liability for each hospital is an amount equal to the result of multiplying each hospital's percentage of total expenditures by the revenue amount provided in subsection (D). Each hospital subject to the tax imposed by this article shall report its annual total expenditures attributable to this State by March first of each year to the Office of Research and Statistical Services of the State Budget and Control Board in a manner consistent with Section 44-6-170(F).
(D) Total annual revenues from the tax, exclusive of penalties and interest, in subsection subsections (A) and (B) of this section must equal twenty-one and one-half million dollars."
SECTION 2. This act takes effect July 1, 1994.