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|
SPONSOR: |
Smith |
DATE
TYPED: |
2/17/03 |
HB |
|
||
|
SHORT
TITLE: |
Hospital
Medical Services Gross Receipts |
SB |
615 |
||||
|
|
ANALYST: |
Smith |
|||||
REVENUE
|
Estimated Revenue |
Subsequent Years Impact |
Recurring or
Non-Rec |
Fund Affected |
|
|
FY03 |
FY04 |
|
|
|
|
|
(2,100.0) |
(2,300.0) |
Recurring |
General Fund |
|
|
(1,410.00) |
(1,540.0) |
Recurring |
Local Governments |
|
|
|
|
|
|
(Parenthesis
( ) Indicate Revenue Decreases)
Responses
Received From
Taxation
and Revenue Department (TRD)
SUMMARY
Synopsis of Bill
Senate Bill 615 amends
Section 7-9-77.1 NMSA 1978 to provide a gross receipts tax deduction to hospitals
for receipts derived from Medicare payments.
To qualify for the deduction, hospitals must be licensed by the
Department of Health.
The section is further
amended to clarify that medical doctors licensed pursuant to Section 66-6-13
(Licensure by Endorsement) and osteopaths licensed pursuant to Section 66-10-12
(Licensure without Examination) qualify for the current Medicare
deduction.
The bill also makes a
minor change in terminology from “osteopaths” to “osteopathic physicians”.
FISCAL
IMPLICATIONS
TRD relied on data
provided by the Department of Health’s Licensing and Certification Bureau. Data from the 1997 Economic Census of Health
Care and Social Assistance and the department’s “Analysis of Gross Receipts by
Standard Industrial Classification” was used to derive a taxable gross receipts
base of $284 million for FY 2004. Data
from the Centers for Medicare and Medicaid Services (formerly the Health Care
Financing Administration) indicates that Medicare payments account for
approximately 22.4% of New Mexico hospital receipts. Thus the fiscal impact assumes $63.5 million dollars of Medicare
receipts would qualify for deduction.
OTHER
SUBSTANTIVE ISSUES
TRD notes that in addition
to adding an element of stability to the gross receipts tax, receipts of the
health care industry grow more quickly than general revenue. Exempting this sector reduces the state’s
ability to generate adequate revenue from the gross receipts tax over
time.
SS/sb