Laws, Regulations & Annotations


Business Taxes Law Guide – Revision 2021

Sales And Use Tax Law


Article 5. Inclusion of Medi-Cal Managed Care Plans in Sales Tax*

Section 6174

6174. Definitions. For purposes of this article, notwithstanding any provision of Chapter 1 (commencing with Section 6001), the following words have the following meanings in extending the sales tax to sellers of Medi-Cal health care services:

(a) "Gross receipts" means the total amount received by a seller of a Medi-Cal managed care plan in premium or capitation payments for the coverage or provision of all health care services, including, but not limited to, Medi-Cal services. "Gross receipts" shall not include amounts received by a Medi-Cal managed care plan pursuant to a subcontract with a Medi-Cal managed care plan to provide health care services to Medi-Cal beneficiaries.

(b) "Seller" means any person, other than an insurer as described in Section 12003 or a dental managed care plan as described in Section 14087.46 of the Welfare and Institutions Code, or any entity that enters into a contract with the State Department of Health Care Services pursuant to Article 2.7 (commencing with Section 14087.3), Article 2.8 (commencing with Section 14087.5), Article 2.81 (commencing with Section 14087.96), Article 2.82 (commencing with Section 14087.98), Article 2.9 (commencing with Section 14088), or Article 2.91 (commencing with Section 14089) of Chapter 7 of, or pursuant to Article 1 (commencing with Section 14200) or Article 7 (commencing with Section 14490) of Chapter 8 of, Part 3 of Division 9 of the Welfare and Institutions Code.

(c) "At retail" means a sale for any purpose other than resale.

(d) "Sale" means the provision of a Medi-Cal managed care plan.

* Article 5 was added by Stats. 2013, Ch. 33 (SB 78), in effect June 27, 2013.