433.72—Waiver provisions applicable to health care-related taxes.
(a) Bases for requesting waiver.
(1)
A State may submit to CMS a request for a waiver if a health care-related tax does not meet any or all of the following:
(2)
When a tax that meets the criteria specified in paragraph (a)(1) of this section is imposed on more than one class of health care items or services, a separate waiver must be obtained for each class of health care items and services subject to the tax.
(b) Waiver conditions.
In order for CMS to approve a waiver request that would permit a State to receive tax revenue (within specified limitations) without a reduction in FFP, the State must demonstrate, to CMS's satisfaction, that its tax program meets all of the following requirements:
(1)
The net impact of the tax and any payments made to the provider by the State under the Medicaid program is generally redistributive, as described in § 433.68(e) ;
(2)
For tax programs commencing on or after August 13, 1993, on the first day in the quarter in which the waiver is received by CMS.
[57 FR 55138, Nov. 24, 1992, as amended at 58 FR 43182, Aug. 13, 1993]