An Act To Ensure Equal Tax Treatment for Private-pay and MaineCare-participating Providers of Residential Care to Persons Who Are Elderly or Disabled

Emergency preamble. Whereas,  acts and resolves of the Legislature do not become effective until 90 days after adjournment unless enacted as emergencies; and

Whereas,  facilities that provide residential care services to persons who are elderly or disabled that do not participate in the MaineCare program are not subject to the State's service provider tax; and

Whereas,  the service provider tax is imposed on providers of residential care services to persons who are elderly or disabled that do participate in the MaineCare program and those providers are therefore classified as private nonmedical institutions both for MaineCare purposes and for determining whether the service provider tax applies; and

Whereas,  the result of this taxation arrangement is that those providers of residential care services to persons who are elderly or disabled without certain specific diagnoses that participate in the MaineCare program are subjected to a tax that increases their operating costs as compared to the costs of similar facilities that do not accept MaineCare-eligible residents and interferes with their ability to provide needed services; and

Whereas,  in the judgment of the Legislature, these facts create an emergency within the meaning of the Constitution of Maine and require the following legislation as immediately necessary for the preservation of the public peace, health and safety; now, therefore,

Sec. 1. 36 MRSA §2551, sub-§10,  as amended by PL 2007, c. 438, §53, is further amended to read:

Emergency clause. In view of the emergency cited in the preamble, this legislation takes effect when approved.

SUMMARY

This bill excludes from the service provider tax private nonmedical institutions that provide services reimbursed under MaineCare for persons who are elderly or disabled without specializing in a particular diagnosis.