If you are a health care provider, hospital, or surgical center that provides health care goods and services in Minnesota, you will continue to file and pay MinnesotaCare taxes after December 31, 2019. The taxes were scheduled to end after 2019, but the sunset has been repealed.
The Minnesota Department of Revenue reports the following tax rate change:
The tax rate will be 1.8% starting January 1, 2020. For any taxable revenue you receive starting January 1, 2020, it will be taxed at 1.8% for the following MinnesotaCare taxes:
- Provider tax
- Hospital tax
- Surgical center tax
- Wholesale drug distributor tax
For Legend Drug Use tax, the new 1.8% tax rate applies to the price paid for legend drugs that are received or delivered in Minnesota on or after January 1, 2020.
For more information contact our healthcare industry team.