Kentucky Code § KRS 142.314

Tax on gross revenues of regional community services for mental health and services for individuals with an intellectual disability
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(1) A tax shall be imposed on regional community services for mental health and individuals with an intellectual dis ability at a uniform rate of up to four percent (4%) on gross revenues received by each provider after July 1, 2005, for the provision of regional community services for mental health and individuals with an intellectual disability. (2) The Department for Medicaid Services shall promulgate administrative regulations to ensure that a portion of the revenues generated from the assessment levied under this section and federal matching funds shall be used for rate increases for regional community services for mental health and individuals with an intellectual disability to recognize cost increases, including current wage and benefit levels in the industry. (3) The remaining revenue generated from the assessment levied under this section and federal matching fund s shall be used to supplement the medical -assistance-related general fund appropriations of the Department for Medicaid Services. (4) On or before July 1, 2005, the Cabinet for Health and Family Services, Department for Medicaid Services, shall submit an a pplication to the Centers for Medicare and Medicaid Services to request any necessary waiver pursuant to 42 C.F.R. secs. 433.56 and 433.68. (5) If an application to the Centers for Medicare and Medicaid Services for a waiver is denied, the Department for M edicaid Services may resubmit the application with appropriate changes to receive an approved waiver. (6) The assessment imposed pursuant to this section shall begin on July 1, 2005, but is not due and payable until rates are increased pursuant to this provision. (7) The provisions of this section shall be null and void if the waiver or plan amendment to increase rates is not approved by the Centers for Medicare and Medicaid Services. (8) If the assessment provided for in this section is disallowed by the C enters for Medicare and Medicaid Services, all collections under this section shall cease.

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