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42 C.F.R. § 433.70   Limitations on level of FFP for revenues from health care-related taxes after the transition period.

Title 42: Public Health
PART 433—STATE FISCAL ADMINISTRATION
Subpart B—General Administrative Requirements State Financial Participation

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§ 433.70   Limitations on level of FFP for revenues from health care-related taxes after the transition period.

(a) Limitations. (1) Subsequent to the end of a State's transition period (as defined in §433.58(b)), and extending through September 30, 1995, the maximum amount of health care-related taxes specified in §433.68 that a State may receive during a State fiscal year (or portion thereof), without a reduction in FFP, is limited to—

(i) The greater of 25 percent or the State base percentage as described in §433.60(b); multiplied by

(ii) The State's share of total medical assistance expenditures for the State fiscal year, less all health care-related taxes other than those described in §433.68 that are deducted separately pursuant to paragraph (b) of this section.

(2) Beginning October 1, 1995, there is no limitation on the amount of health care-related taxes that a State may receive without a reduction in FFP, as long as the health care-related taxes meet the requirements specified in §433.68.

(b) Calculation of FFP. CMS will deduct from a State's medical assistance expenditures, before calculating FFP, revenues from health care-related taxes that do not meet the requirements of §433.68 and any health care-related taxes in excess of the limits specified in paragraph (a)(1) of this section.