We collect tax from health care providers, hospitals, and surgical centers that provide health care goods and services in Minnesota. We also collect tax on legend drugs sold, delivered, or distributed into the state. These taxes fund the MinnesotaCare program, a state health care program for Minnesotans with low incomes.
COVID-19 Penalty Relief
You may ask us to cancel or reduce penalties and interest for late filing or payment if you have a reasonable cause or are negatively affected by the COVID-19 pandemic. For details, see Penalty Abatement for Businesses.
For more state tax updates and information, see Our Response to COVID-19.
COVID-19 Relief Payments
The following COVID-19 relief payments are not subject to Provider, Hospital, or Surgical Center taxes.
Federal CARES Act
Payments received under the following federal laws to prevent, prepare for, and respond to the COVID-19 pandemic:
- Public Law No. 116-127
- Public Law No. 116-136
- Public Law No. 116-139
Minnesota Department of Health
- Payments received from the Public Health Response Contingency Account (2020 Minnesota Laws, Chapter 70, Article 1).
- Payments received from the Health Care Response Fund and Provider Grant Program (2020 Minnesota Laws, Chapter 70, Article 2).
We will provide more information on how to report these payments on your 2020 MinnesotaCare tax return. To receive this information by email, subscribe to MinnesotaCare Tax Updates.