HOUSE BILL 692

48th legislature - STATE OF NEW MEXICO - first session, 2007

INTRODUCED BY

John A. Heaton

AN ACT

RELATING TO TAXATION; PROVIDING A DEDUCTION FROM GROSS RECEIPTS AND GOVERNMENTAL GROSS RECEIPTS TAXES FOR OXYGEN DELIVERED BY A LICENSED MEDICARE DURABLE MEDICAL EQUIPMENT PROVIDER.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. Section 7-9-73.2 NMSA 1978 (being Laws 1998, Chapter 95, Section 2 and Laws 1998, Chapter 99, Section 4, as amended) is amended to read:

     "7-9-73.2. DEDUCTION--GROSS RECEIPTS TAX AND GOVERNMENTAL GROSS RECEIPTS TAX--PRESCRIPTION DRUGS--OXYGEN.--

          A. Receipts from the sale of prescription drugs and oxygen and oxygen services provided by a licensed medicare durable medical equipment provider may be deducted from gross receipts and governmental gross receipts.

          B. For the purposes of this section, "prescription drugs" means insulin and substances that are:

                (1) dispensed by or under the supervision of a licensed pharmacist or by a physician or other person authorized under state law to do so;

                (2) prescribed for a specified person by a person authorized under state law to prescribe the substance; and

                (3) subject to the restrictions on sale contained in Subparagraph 1 of Subsection (b) of 21 USCA 353."

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