Minn. Stat. » CHAPTER 295. GROSS REVENUES AND GROSS RECEIPTS TAXES
Minnesota Statutes

Minn. Stat. § 295.52 (2026)

Taxes Imposed

✓ current as of May 2026
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Subdivision 1.Hospital tax.

A tax is imposed on each hospital equal to 1.8 percent of its gross revenues.

Subd. 1a.Surgical center tax.

A tax is imposed on each surgical center equal to 1.8 percent of its gross revenues.

Subd. 1b.

[Repealed, 1997 c 225 art 3 s 23]

Subd. 2.Provider tax.

A tax is imposed on each health care provider equal to 1.8 percent of its gross revenues.

Subd. 3.Wholesale drug distributor tax.

A tax is imposed on each wholesale drug distributor equal to 1.8 percent of its gross revenues.

Subd. 4.Use tax; legend drugs.

(a) A person that receives legend drugs for resale or use in Minnesota, other than from a wholesale drug distributor that is subject to tax under subdivision 3, is subject to a tax equal to the price paid for the legend drugs multiplied by 1.8 percent. Liability for the tax is incurred when legend drugs are received or delivered in Minnesota by the person.

(b) A tax imposed under this subdivision does not apply to purchases by an individual for personal consumption.

Subd. 4a.Tax collection.

A wholesale drug distributor with nexus in Minnesota, who is not subject to tax under subdivision 3, on all or a particular transaction is required to collect the tax imposed under subdivision 4, from the purchaser of the drugs and give the purchaser a receipt for the tax paid. The tax collected shall be remitted to the commissioner in the manner prescribed by section 295.55, subdivision 3.

Subd. 5.Volunteer ambulance services.

Volunteer ambulance services are not subject to the tax under this section. For purposes of this requirement, "volunteer ambulance service" means an ambulance service in which all of the individuals whose primary responsibility is direct patient care meet the definition of volunteer under section 144E.001, subdivision 15. The ambulance service may employ administrative and support staff, and remain eligible for this exemption, if the primary responsibility of these staff is not direct patient care.

Subd. 6.Hearing aids and prescription eyewear.

The tax liability of a person who meets the definition of a health care provider solely because the person sells or repairs hearing aids and related equipment or prescription eyewear is limited to the gross revenues received from the sale or repair of these items.

Subd. 7.

[Repealed, 2014 c 308 art 9 s 94]

Subd. 8.Contingent reduction in tax rate.

(a) By December 1 of each year, beginning in 2011, the commissioner of management and budget shall determine the projected balance in the health care access fund for the biennium.

(b) If the commissioner of management and budget determines that the projected balance in the health care access fund for the biennium reflects a ratio of revenues to expenditures and transfers greater than 125 percent, and if the actual cash balance in the fund is adequate, as determined by the commissioner of management and budget, the commissioner, in consultation with the commissioner of revenue, shall reduce the tax rates levied under subdivisions 1, 1a, 2, 3, and 4, for the subsequent calendar year sufficient to reduce the structural balance in the fund. The rate may be reduced to the extent that the projected revenues for the biennium do not exceed 125 percent of expenditures and transfers. The new rate shall be rounded to the nearest one-tenth of one percent. The rate reduction under this paragraph expires at the end of each calendar year and is subject to an annual redetermination by the commissioner of management and budget.

(c) For purposes of the analysis defined in paragraph (b), the commissioner of management and budget shall include projected revenues.

Notes of Decisions
Cited in 10 cases (3 in the last 5 years), 1993–2026 · leading case: Walgreens Specialty Pharmacy, LLC v. Comm'r of Revenue, 916 N.W.2d 529 (Minn. 2018).
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Walgreens Specialty Pharmacy, LLC v. Comm'r of Revenue, 916 N.W.2d 529 (Minn. 2018). · cites it 19× “*531 Respondent Walgreens Specialty Pharmacy, LLC ("WSP") requested refunds from the Department of Revenue for taxes paid under Minnesota's Legend Drug Tax, see Minn. Stat. § 295.52 , subd. 4 (2016), on transactions between WSP's non-resident pharmacies and Minnesota-based…”
Mayo Collaborative Servs., Inc. v. Comm'r of Revenue, 698 N.W.2d 408 (Minn. 2005). · cites it 5× “59: ⅜ * * ’* (4) payments received from hospitals or surgical centers for goods and services on which liability for tax is imposed under section 295.52 * * *. (5) payments received from health care providers for goods and services on which liability for tax is imposed under this…”
Bloom v. O'BRIEN, 841 F. Supp. 277 (D. Minnesota 1993). · cites it 5× “” Beginning January 1, 1994, plaintiffs will be subject to the regulations established by Minnesota Statutes Sections 295.52 and 295.-53. Section 295.”
Boyle v. Anderson, 849 F. Supp. 1307 (D. Minnesota 1994). · cites it 8× “Laws 1616-17; Minn.Stat. § 295.52. 3 . Defendants argue that there is no state action with respect to the "non-statutory passthrough” of the provider tax.”
In re the Consol. Hosp. Surcharge Appeals of Gillette Child.'s Specialty Healthcare, 867 N.W.2d 513 (Minn. Ct. App. 2015). · cites it 2× “See Minn. Stat. § 295.52 (1994). HealthPartners was a “staff model health plan company” that contracted directly with OPM to serve both as an insurance carrier and a healthcare services provider for federal employees.”
Baertsch v. Minnesota Dep't of Revenue, 518 N.W.2d 21 (Minn. 1994). · cites it 2× “Minn.Stat. § 295.52, subd. 2 *23 (1992). For nonresident health care providers, the gross revenues subject to the tax are the total amounts received “for patient services provided to an individual domiciled in Minnesota.”
Dakota Drug, Inc. v. Comm'r of Revenue, Relator (Minn. 2024). · cites it 24× “________________________ SYLLABUS Under Minn. Stat. § 295.52 , subd. 3 (2018), “gross revenues” does not include rebate amounts paid to a wholesale drug distributor’s customer pursuant to a rebate agreement.”
Su v. Bcbsm, Inc. (D. Minnesota 2024). · cites it 2× “Minn. Stat. 295.52; (Compl. ¶ 18.) The current rate for the MNCare Tax is 1.”
PASCP Inc., Relator, Comm'r of Revenue (Minn. 2026). · cites it 2× “Subdivision 6(2), however, extends the limitation period to 6½ years if “the taxpayer omits from a sales, use, or withholding tax return, or a return for a tax imposed under section 295.52, an amount of taxes in excess of 25 percent of the taxes reported in the return[.”
In the Matter of the Consol. Hosp. Surcharge Appeals of Gillette Child.'s Specialty Healthcare, St. Luke's Hosp., North Mem'l Health Care, HealthEast Care Sys., Park Nicollet Health Servs., Fairview Health Servs., & Child.'s Hospitals & Clinics of Minnesota. (Minn. Ct. App. 2015). · cites it 2× “See Minn. Stat. § 295.52 (1994). HealthPartners was a “staff model 13 health plan company” that contracted directly with OPM to serve both as an insurance carrier and a health-care services provider for federal employees.”
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