HB484 Alabama 2013 Session

Summary

Primary Sponsor

Jim Barton

Republican

Co-Sponsor

Chad Fincher

Session

Regular Session 2013

Title

PACE program, provide for an assessment on business activities in the state

Summary

This bill would impose a 5% privilege tax on PACE programs in Alabama to fund Medicaid-related activities.

What This Bill Does

It creates a 5% tax on the gross receipts of each PACE provider. The Department of Revenue collects the tax and deposits it into the Alabama Health Care Trust Fund (or a successor fund) for use in the Medicaid program. Providers must keep records, and penalties of 10% plus interest apply for late payment, with possible withholding from Medicaid reimbursements if applicable. The measure is effective only if federal participation under Title XIX is available and the funds must be used to support Medicaid purposes.

Who It Affects

• PACE providers operating in Alabama — they would pay a 5% tax on gross receipts, must maintain records, and could face penalties and collection actions for nonpayment.
• The Alabama Medicaid Agency and Medicaid program beneficiaries — they would receive revenue from the tax to fund Medicaid activities, with safeguards to ensure timely provider reimbursements and potential offset if a provider also receives Medicaid payments.

Key Provisions

• A 5% privilege assessment on the gross annual receipts of each PACE provider.
• Funds collected go to the Alabama Health Care Trust Fund (or successor) and are used for Medicaid-related purposes, subject to available federal participation.
• The assessment is due by the 20th of the month after it accrues; penalties of 10% plus interest apply for late payment; the department may withhold amounts from Medicaid reimbursements if applicable; the act creates debt and allows civil collection and liens.
• PACE providers must keep books and records for at least three years; records are open to the department; information is confidential but may be shared with the Medicaid Agency as needed.
• Medicaid Agency must use the revenues for purposes permitted by Title XIX with federal participation; reimbursements to providers must be timely; interest applies if timely payment is not made.
• No revenues from this assessment may be used to increase Medicaid services or reimbursement levels while the assessment is in effect.
• The act takes effect October 1, 2013, and is contingent on availability of federal participation under Title XIX.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation