Officials say hospital tax legal, critics eye court battle

L&M hospital emergency room 2

HARTFORD, Conn. (AP) — Two state agencies say a tax on Connecticut’s hospitals is legal, setting the stage for a possible court battle.

Commissioners from the Departments of Social Services and Revenue Services issued a declaratory ruling Thursday, determining the “provider tax” was legally and properly implemented by the General Assembly in 2011.

Last November, the Connecticut Hospital Association sought rulings on whether the tax on net patient revenues is constitutional. The determination that the tax and methodology are fine could become grounds for the association to legally challenge the tax.

The association calls the ruling “unfortunate but not unexpected.” It plans to “pursue every legal option at our disposal” as it continues to challenge the tax.

The New Hampshire Hospital Association took a similar path before negotiating a financial settlement with the state.

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