California to Tax Sales of Medi-Cal
- Sales Tax News
- Jul 2, 2013 | Gail Cole
Update, 8.20.13: The California State Board of Equalization has released a special notice explaining the new Medi-Cal sales tax.
California now imposes a tax of 3.9375% on sales of Medi-Cal managed care plans, thanks to the approval of Senate Bill 78 by Governor Jerry Brown (D) on June 27. The Medi-Cal program provides health care services to qualified, low-income individuals.
Under the bill, sales tax will be imposed "on sellers of Medi-Cal managed care plans for the privilege of selling Medi-Cal health care services at retail …." The tax is to be temporary, imposed "on July 1, 2013, and before July 1, 2016, except if specified contingencies occur as provided, and only if and to the extent that federal financial participation is available and necessary federal approvals have been obtained…." (Emphasis mine).
Local taxation of Medi-Cal health services is not allowed.
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