Nonprofit hospitals

From the 2024 DOR Tax Exemption Study

Det. No. 14-0344, 34 WTD 288 (July 31, 2015) 288 Cite as Det. No. 14-0344, 34 WTD 288 (2015) BEFORE THE APPEALS DIVISION DEPARTMENT OF REVENUE STATE OF WASHINGTON In the Matter of the Petition for Refund of ) D E T E R M I N A T I O N ) ) No. 14-0344 ) . . . ) Registration No. . . . ) . . . ) Registration No. . . . ) [1] RCW 82.04.4311: B&O TAX – NONPROFIT HOSPITAL -- MEDICAID & CHIP EXEMPTION. Out of state Medicaid and CHIP payments to a nonprofit hospital are not exempt from B&O tax. [2] RCW 82.04.4297: B&O TAX -- FEDERAL MEDICAID CONTRIBUTION. A nonprofit hospital may not deduct the Federal Medicaid contribution to another state from its Medicaid payments to measure its B&O tax. [3] RULE 201: B&O TAX – HOSPITAL – EMPLOYEES – INTERDEPARTMENTAL CHARGES. A hospital may not deduct payments to its self-insured medical plan for medical services that it provided to its employees. Headnotes are provided as a convenience for the reader and are not in any way a part of the decision or in any way to be used in construing or interpreting this Determination. M. Pree, A.L.J. – Two [out of state] nonprofit hospitals seek a refund of business and occupation (B&O) tax paid on . . . Medicaid paym