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Bill

Bill

SF 4194

Gross receipts tax on hospitals and health care providers

2025-2026 Regular Session Introduced by Warren Limmer

Minnesota bill would impose a gross receipts tax on hospital and healthcare provider revenues, potentially raising treatment costs and healthcare premiums while funding unspecified state priorities.

Withdrawn and re-referred to Health and Human Services
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Bill Summary · SF 4194

Legislative bill overview

SF 4194 proposes a gross receipts tax on hospitals and health care providers in Minnesota. The bill would create a new tax obligation based on the total revenue generated by these healthcare entities, rather than on profits or other traditional tax measures.

Why is this important

Healthcare provider taxation directly affects how medical services are funded and delivered. This tax structure could influence hospital operations, insurance premiums, and ultimately patient care costs and accessibility across Minnesota's healthcare system.

Potential points of contention

  • Cost Pass-Through: Hospitals may transfer tax costs to patients, insurers, and consumers through higher service fees and insurance premiums, potentially increasing healthcare affordability challenges
  • Tax Structure Concerns: Gross receipts taxes are considered broad-based and can create cascading tax effects; applying this to healthcare—a sector with complex billing and reimbursement structures—raises administrative complexity questions
  • Competitive Impact: Different tax treatment between Minnesota healthcare providers and those in neighboring states could affect patient migration, provider recruitment, and hospital competitiveness
  • Revenue Allocation: The bill's stated use of tax revenue is unclear, affecting debate over whether proceeds justify the tax burden on healthcare sector stakeholders

Compiled from official sources — confirm details with the bill’s official record.

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