Medicaid payments to assisted living facilities

From the 2024 DOR Tax Exemption Study

82.04.4337 - Medicaid payments to assisted living facilities Description Licensed assisted living facilities may deduct income received from Medicaid payments for providing residential care. Purpose To make the tax treatment of assisted living facilities the same as nursing homes. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.268 $0.287 $0.305 $0.326 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this deduction would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.263 $0.305 $0.326 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate mirrors the B&O taxable activity growth rate reflected in the Economic and Revenue Forecast Council's March 2023 forecast. Data Sources - Department of Revenue, Excise tax data - Economic and Revenue Forecast Council, March 2023 forecast Additional Additional Information Information Category: Business Year Enacted: 2004 Primary Beneficiaries: Assisted living facilities Taxpayer Count: 109 Program Inconsi