TITLE XII_TEMPORARY ASSESSMENT ON EMPLOYERS WITH RETIREE HEALTH BENEFIT COSTS
table of contents of title
Sec. 1201. Temporary assessment on employers with retiree health benefit costs.
Sec. 1202. Recapture of retiree subsidy beginning in 1998.
SEC. 1201. TEMPORARY ASSESSMENT ON EMPLOYERS WITH RETIREE HEALTH BENEFIT COSTS.
__(a) In General._Subtitle C (relating to employment taxes) is amended by inserting after chapter 24A the following new chapter:
``CHAPTER 24B_TEMPORARY ASSESSMENT ON EMPLOYERS WITH RETIREE HEALTH BENEFIT COSTS
``Subchapter A. Temporary assessment.
``Subchapter B. Definitions and administrative provisions.
``Subchapter A_Temporary Assessment
``Sec. 3463. Temporary assessment on employers with retiree health benefit costs.
``SEC. 3463. TEMPORARY ASSESSMENT ON EMPLOYERS WITH RETIREE HEALTH BENEFIT COSTS.
__``(a) Imposition of Assessment._Every employer with base period retiree health costs shall pay (in addition to any other amount imposed by this subtitle) for each calendar year to which this section applies an assessment equal to the amount determined under subsection (b).
__``(b) Amount of Assessment._For purposes of subsection (a), the amount determined under this subsection with respect to any employer for any calendar year is 50 percent of the greater of_
__``(1) the adjusted base period retiree health costs of such employer for such calendar year, or
__``(2) the amount (determined in the manner prescribed by the Secretary) by which such employer's applicable retiree health costs for such calendar year were reduced by reason of the enactment of the Health Security Act.
__``(c) Definitions._For purposes of this section_
__``(1) Base period retiree health costs._The term `base period retiree health costs' means the average of the applicable retiree health costs of the employer for calendar years 1991, 1992, and 1993.
__``(2) Adjusted base period retiree health costs._
__``(A) In general._The term `adjusted base period retiree health costs' means, with respect to any employer for any calendar year, the base period retiree health costs of the employer adjusted in the manner prescribed by the Secretary to reflect increases in the medical care component of the Consumer Price Index during the period after 1992 and before such calendar year.
__``(B) Adjustments for acquisitions and dispositions._Rules similar to the rules of subparagraphs (A) and (B) of section 41(f)(3) shall apply to acquisitions and dispositions after December 31, 1993.
__``(3) Applicable retiree health costs._
__``(A) In general._The term `applicable retiree health costs' means, with respect to any employer for any calendar year, the aggregate cost (including administrative costs) of the health benefits or coverage provided during such calendar year (whether directly by the employer or through a plan described in section 401(h) or a welfare benefit fund as defined in section 419(e)) to individuals who are entitled to receive such benefits or coverage by reason of being retired employees of such employer (or by reason of being a spouse or other beneficiary of such an employee).
__``(B) Only benefits and coverage after age 55 and before age 65 taken into account._In applying subparagraph (A), there shall be taken into account only health benefits and coverage provided after the date the retired employee attained age 55 and before the date such employee attained (or, but for the death of such employee, would have attained) age 65.
__``(d) Years to Which Assessment Applies._This section shall apply to calendar years 1998, 1999, and 2000.
``Subchapter B_Definitions and Administrative Provisions
``SEC. 3464. DEFINITIONS AND ADMINISTRATIVE PROVISIONS
__``(a) Employer._For purposes of this chapter_
__``(1) In general._The term `employer' means any person or governmental entity for whom an individual performs services, of whatever nature, as an employee (as defined in section 3401(c)).
__``(2) Special rules._
__``(A) An individual who owns the entire interest in an unincorporated trade or business shall be treated as his own employer.
__``(B) A partnership shall be treated as the employer of each partner who is an employee within the meaning of section 401(c)(1).
__``(C) An S corporation shall be treated as the employer of each shareholder who is an employee within the meaning of section 401(c)(1).
__``(b) Assessment to Apply to Governmental and Other Tax-Exempt Entities._Notwithstanding any other provision of law or rule of law, none of the following shall be exempt from the assessment imposed by this chapter:
__``(1) The United States, any State or political subdivision thereof, the District of Columbia, and any agency or instrumentality of any of the foregoing.
__``(2) Any other entity otherwise exempt from tax under chapter 1.
__``(c) Administrative Provisions._
__``(1) Payment._Any assessment under section 3463 for any calendar year shall be paid on or before March 15 of the following calendar year; except that the Secretary may require quarterly estimated payments of such assessment in a manner similar to the requirements of section 6655.
__``(2) Collection, etc._For purposes of subtitle F, any assessment under this subchapter shall be treated as if it were a tax imposed by this subtitle.''
__(b) Clerical Amendment._The table of chapters for subtitle C is amended by inserting after the item relating to chapter 24A the following new item:
``Chapter 24B. Temporary Assessment on Employers With Retiree Health Benefit Costs.''
__(c) Effective Date._The amendments made by this section shall take effect on January 1, 1998.
SEC. 1202. RECAPTURE OF RETIREE SUBSIDY BEGINNING IN 1998.
__(a) In General._Paragraph (2) of section 59B(a) (relating to recapture of certain health care subsidies), as added by title VII of this Act, is amended by striking ``December 31, 1999'' and inserting ``December 31, 1997''.
__(b) Technical Amendment._Paragraph (2) of section 7131(d) of this Act is amended by striking ``December 31, 2001'' and inserting ``December 31, 1999''.
