Provider Tax

You must file a Provider Tax Return if any of these apply:

• You are a self-employed health care provider who is regulated or required to be regulated by Minnesota
• You are an employer of a health care provider who is regulated or required to be regulated by Minnesota. Employers include professional associations and staff model health plan companies
• You are eligible for reimbursement from the Medical Assistance (MA) program for the health care goods and services you provide
• You sell or repair hearing aids and related equipment
• You sell or repair prescription eyewear
• You are a licensed ambulance service (non-volunteer)
• You provide patient services and employ or contract with a health care provider to perform, supervise, oversee, or consult with about patient services

For more information, go to:

• Health Care Occupations Regulated by Minnesota
• Entities Not Required to File a Provider Tax Return

Remote sellers are out-of-state businesses that sell products to customers in Minnesota without having physical presence, or nexus, in the state.

Remote sellers that sell hearing aids and related equipment or prescription eyewear to consumers in Minnesota must file a Provider Tax Return if they meet one or both of these thresholds during a calendar year:

• 200 or more sales, deliveries, or distributions of the above items into Minnesota
• More than $100,000 in gross revenue from sales, deliveries, or distributions of the above items into Minnesota

Small Seller Exception for Remote Sellers

Remote sellers that are below both thresholds during a calendar year qualify for the Small Seller Exception and are not subject to tax for that year. For more information on remote seller requirements and the Small Seller Exception, go to Remote Sellers of Hearing Aids or Prescription Eyewear.

You need a Minnesota Tax ID Number and a Provider Tax account to file returns and pay tax.

You can register for a Minnesota ID number and an account at the same time, either:

• Online through Business Tax Registration
• By phone at 651-282-5225 or 1-800-657-3605

If you already have a Minnesota ID number, you can add an account either:

• Online in our e-Services system by selecting Open a new account under I Want To…
• By phone at 651-282-5225 or 1-800-657-3605

You must file your annual return electronically using our e-Services system.

You must pay electronically if you meet certain requirements. Go to Electronic Payment for Business for information about the requirements.

If you are required to pay electronically, you can pay using our e-Services system, by Automated Clearing House (ACH) credit, or by credit or debit card.

If you are not required to pay electronically, you can pay by check using a payment voucher.

For more payment options, go to Make a Payment.

You must file your annual return and pay any tax owed by the due dates to avoid penalty and interest. If a due date falls on a weekend or holiday, your return or payment is due the next business day.

Return

Your Provider Tax Return is due annually by March 15 for the previous calendar year. If you cannot file by the due date, you may request a 60-day filing extension.

Payments

If your total annual tax was more than $500 for the previous year and will be more than $500 for the current year, you must make quarterly estimated tax payments.

Estimated tax payments are due:

• April 15
• July 15
• October 15
• January 15 of the following year

If you are not required to make quarterly estimated tax payments, you may pay your tax annually when you file your return. 

You must pay all tax owed by March 15.

If you are required to make quarterly estimated tax payments, you must calculate the payments a specific way under the MinnesotaCare tax law.

Quarterly estimated tax payments must be at least either:

• 90% of one-fourth of your actual tax for the current year
• One-fourth of your actual tax for the previous year

To calculate the amount you must pay, follow the Estimated Tax Instructions for Provider Tax.

We may assess an additional charge for underpaid estimated tax on payments that are late or less than the required amount.

Note: When you file your annual return, you may need to make an additional payment. Our e-Services system compares your total quarterly estimated tax payments to the tax you report on your return. If the tax on your return is more than your total payments, you must pay the remaining tax by March 15.

Gross receipts include amounts you receive for providing patient services in Minnesota. Include both taxable and exempt amounts in gross receipts. Any exempt amounts will be subtracted from gross receipts on the exemption lines of your return. For more information, go to Calculating Gross Receipts.

Several exemptions are available that may reduce your taxable gross receipts. The exemptions are for certain payments you receive and for legend drug purchases. You must include exempt amounts in gross receipts. If an amount qualifies for multiple exemptions, claim the amount for only one exemption.

For a list of common exemptions, go to MinnesotaCare Tax Exemptions for health care providers, hospitals, and surgical centers.

The Medical Assistance Supplemental Payments Exemption and Research Credit only apply to certain health care providers. If you believe you are eligible for the exemption or credit but have not claimed them in the past, contact us at 651-282-5533 so we can update your e-Services account.