Connecticut State Department of Revenue Services

SN 92(16)

Nursing Home Tax

PURPOSE: This Special Notice describes the tax imposed on the net revenue of nursing homes by 1992 Conn. Pub. Acts 16, §34 (May Spec. Sess.).

EFFECTIVE DATE: Effective upon issuance and applicable to the net revenue of nursing homes for calendar quarters commencing on or after April 1, 1992 but before April 1, 1993.

STATUTORY AUTHORITY: 1992 Conn. Pub. Acts 16, §34 (May Spec. Sess.).

IMPOSITION OF TAX: The tax shall be paid quarterly by each nursing home at the rate of 1.75% of its quarterly net revenue.

DEFINITIONS:

"Nursing home" means any person that is licensed by the Department of Health Services in accordance with Conn. Gen. Stat. §19a-493 to maintain and operate a:

  • chronic and convalescent nursing home:
  • rest home with nursing supervision:
  • chronic and convalescent nursing home and rest home with nursing supervision.

"Gross revenue" is to be determined on the accrual basis of accounting in accordance with generally accepted accounting principles and means the total of:

  • daily routine nursing home service charges, and
  • all other inpatient nursing home revenue (including ancillary service charges of any nursing home or any related-party affiliate thereof (other than a hospital, as defined in Conn. Gen. Stat. §19a-490).

"Net revenue" is to be determined on the accrual basis of accounting in accordance with generally accepted accounting principles and means gross revenue less reductions resulting from:

  • recognition of governmental and nongovernmental payors' contractual adjustments, and
  • accounts receivable that are (1) determined to be worthless and actually written off as uncollectible for federal income tax purposes and (2) attributable to charges for routine nursing home services and ancillary services that are rendered on or after April 1, 1992.

"Contractual adjustments" means the difference between charges that are imposed by a nursing home and amounts that are reasonably realizable from third-party payors for the services for which such charges are made.

"Routine nursing home services" means room accommodations, nursing care, food services, institutional laundry services, housekeeping services, services related to the use and maintenance of real property, social and recreational services and all other allied and customary goods and services that are offered by a nursing home.

"Ancillary services" means physical therapy, speech therapy and occupational therapy services that are rendered to an individual patient to address a specific medical need of that patient.

FILING REQUIREMENTS: Each nursing home must file a return (Form OP-336) and pay the tax for each calendar quarter beginning on or after April 1, 1992 (but before April 1, 1993) on or before the last day of the month immediately following the end of the quarter.

PENALTY AND INTEREST: If the tax is not paid when due, a penalty of 10% of the amount due or $50.00, whichever is greater, will be imposed and the tax will bear interest at 1.5% per month until the assessment is paid. Under Conn. Gen. Stat. (section symbol)12-30, if the nursing home owes no tax but does not timely file a return, a penalty of $50.00 will be imposed. 

SN 92(16)
Nursing home tax
Issued 7/13/92