California – New Sales Tax on Medi-Cal Managed Care Plans Delayed

SALT Report 3083 – The California State Board of Equalization issued a notice advising taxpayers that the implementation of the Medi-Cal managed care sales tax program has been delayed pending federal approval.  Because of this, you will not be required to pay these taxes until you receive capitation payments from the Department of Health Care Services.

Additionally, the BOE advises that no implementation date has been determined; however once the necessary approvals have been granted, they will issue a notice, and, the new sales tax will be retroactive to the effective date of July 1, 2013.

For Further Information

California State Board of Equalization – Special Notice

SALT Report 2871 – New Sales Tax on Medi-Cal Managed Care Plans