Rochester, Minn.-based Mayo Clinic plans to pay $10 million more in taxes as a result of the tax overhaul President Donald Trump signed into law last week, according to the Post Bulletin.
The health system — which posted $11 billion in revenue in 2016 — paid $14 million for state and federal income taxes in 2016 and $24 million in 2015, according to a 2016 independent auditor's report cited by the PB.
Mayo pointed to several provisions in the tax package that trigger a tax increase:
- Taxes on certain employee benefits, such as transit passes, parking, shuttles, bicycle commuting reimbursement and access to Mayo's on-site fitness facilities, will make up 25 percent of the $10 million increase
- A 1.4 percent excise tax on college endowments will apply to Mayo Clinic since it is classified as an academic medical center
- A 21 percent excise tax on any amount in excess of $1 million in annual compensation paid to the five highest-paid employees applies to Mayo, yet the final bill excludes compensation paid to professionals who provide medical services
Mayo said a few last minute changes to provisions in the tax package lessened its cost. These include the exclusion of medical professionals from the compensation tax, a change that allows nonprofit hospitals to access tax-exempt municipal bond financing for capital projects, and certain employee benefits — including tuition assistance and dependent care assistance — remaining tax-free.