Cash Receipts Assessment Program
May 13, 2005
Dear Administrator/Controller:
Re: Cash Receipts Assessment Program
The following will provide a summary and related implementation instructions regarding recent statutory changes made to the Residential Health Care Facility (RHCF) Cash Receipts Assessment Program authorized pursuant to Section 2807-d of the Public Health Law (PHL). As recently established by Sections 23 and 25 of Part C of Chapter 63 of the Laws of 2005, authorized modifications are as follows:
The Chapter Law amends PHL Section 2807-d(2)(b)(vi) to read <"...for all such gross receipts received on or after April 1, 2003, through March 31, 2005, such assessment shall be five percent and further provided that for all such gross receipts received on or after April 1, 2005, through March 31, 2007, such assessment shall be six percent."
Section 25 of the Chapter Law states that <"Notwithstanding any provision of law, rule or regulation to the contrary, assessments due for any period on or after January 1, 2003 and prior to February 28, 2005, pursuant to subparagraph (vi) of paragraph (b) of subdivision 2 of section 2807-d of the public health law, which are paid in full and accompanied by appropriate reports and which are received on or before December 31, 2005, shall not be subject to interest or penalties as otherwise provided in section 2807-d of the public health law..."
We should also note that Section 24 of this Chapter Law amends Section 606 of the NYS Tax Law by adding a new subsection (hh), which creates a nursing home assessment credit for personnel State Income Tax purposes. This provision reads as follows:
<(hh) Nursing home assessment credit. "(1) Allowance of Credit. A taxpayer shall be allowed a credit against
the tax imposed by this article equal to the amount that directly relates to
the assessment imposed on a residential health care facility pursuant to
paragraph (b) of subdivision two of section twenty-eight hundred seven-d of the
public health law which is separately stated and accounted for on the billing
statement of a resident of a residential health care facility and is paid
directly by the individual taxpayer.
(2) Application of Credit. If the amount of the credit allowed under
this subsection for any taxable year shall exceed the taxpayer's tax for such
year, the excess shall be treated as an overpayment of tax to be credited or
refunded in accordance with the provisions of section six hundred eighty-six of
this article, provided, however, that no interest shall be paid thereon."
If you have any questions concerning your outstanding reports and payments, please contact Ms. Joanne Yaworsky at the Office of the Assessment Fund Administrator, Excellus BlueCross BlueShield, Central New York Region, at (315) 671-3800. For all other questions, please contact either Mr. Walter Susko or Ms. Karla Knuth of the Bureau of Financial Management and Information Support at (518) 473-4653.
Sincerely,
Mark H. Van Guysling
Assistant Director
Division of Health Care Financing
