KRS 142.303 — Tax on gross revenues of providers for hospital services -- Exception

(1) A tax is hereby imposed at a rate of two and one -half percent (2.5%) on gross
revenues received by all providers on or after July 15, 1994, for the provision of
hospital services. The tax imposed by this section shall not apply to gross revenues
received f or dispensing outpatient prescription drugs subject to tax under KRS
142.311.
(2) (a) Notwithstanding any other provision of the Kentucky Revised Statutes to the
contrary, beginning in state fiscal year 2008 -2009 and continuing annually
thereafter, the tax imposed under subsection (1) of this section on providers of
hospital services who paid taxes in state fiscal year 2005 -2006 shall be
assessed on gross revenues received by the provider during state fiscal year
2005-2006. Notwithstanding KRS 142.301 to 142.363, hospital provider taxes
due in state fiscal year 2008 and continuing annually thereafter shall be paid in
twelve (12) equal monthly installments, with each payment due no later than
twenty (20) days after the last day of each calendar month. At leas t thirty (30)
days prior to the beginning of the state fiscal year, the Department of Revenue
shall send written notice to each provider of hospital services of the provider's
total tax liability for the year, which shall be the amount the provider paid in
taxes in state fiscal year 2005 -2006. The provisions of this paragraph also
shall apply if the hospital subsequently undergoes a change in ownership.
(b) If a hospital was not in operation during state fiscal year 2005 -2006, the
hospital shall be taxed pu rsuant to the provisions of subsection (1) of this
section, provided that, upon request of the provider, the Department of
Revenue may adjust the hospital's annual tax liability in accordance with the
gross revenues of a comparable hospital.