KRS 142.303: Tax on gross revenues of providers for hospital services -- Exception.

(1) A tax is hereby imposed at a rate of two and one -half percent (2.5%) on gross

revenues received by all providers on or after July 15, 1994, for the provision of

hospital services. The tax imposed by this section shall not apply to gross revenues

received f or dispensing outpatient prescription drugs subject to tax under KRS

142.311.

(2) (a) Notwithstanding any other provision of the Kentucky Revised Statutes to the

contrary, beginning in state fiscal year 2008 -2009 and continuing annually

thereafter, the tax imposed under subsection (1) of this section on providers of

hospital services who paid taxes in state fiscal year 2005 -2006 shall be

assessed on gross revenues received by the provider during state fiscal year

2005-2006. Notwithstanding KRS 142.301 to 142.363, hospital provider taxes

due in state fiscal year 2008 and continuing annually thereafter shall be paid in

twelve (12) equal monthly installments, with each payment due no later than

twenty (20) days after the last day of each calendar month. At leas t thirty (30)

days prior to the beginning of the state fiscal year, the Department of Revenue

shall send written notice to each provider of hospital services of the provider's

total tax liability for the year, which shall be the amount the provider paid in

taxes in state fiscal year 2005 -2006. The provisions of this paragraph also

shall apply if the hospital subsequently undergoes a change in ownership.

(b) If a hospital was not in operation during state fiscal year 2005 -2006, the

hospital shall be taxed pu rsuant to the provisions of subsection (1) of this

section, provided that, upon request of the provider, the Department of

Revenue may adjust the hospital's annual tax liability in accordance with the

gross revenues of a comparable hospital.