SENATE BILL 664
48th legislature - STATE OF NEW MEXICO - first session, 2007
INTRODUCED BY
Carroll H. Leavell
AN ACT
RELATING TO TAXATION; PROVIDING A PHASED-IN DEDUCTION FROM GROSS RECEIPTS FOR HEALTH CARE SERVICES PROVIDED BY A HEALTH CARE PRACTITIONER.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. A new section of the Gross Receipts and Compensating Tax Act, Section 7-9-101 NMSA 1978, is enacted to read:
"7-9-101. [NEW MATERIAL] DEDUCTION--GROSS RECEIPTS--HEALTH CARE SERVICES.--
A. Receipts from the provision of health care services provided by a health care practitioner that are not otherwise deductible pursuant to Section 7-9-93 NMSA 1978 or another provision of the Gross Receipts and Compensating Tax Act may be deducted from gross receipts as follows:
(1) from July 1, 2007 through June 30, 2008, twenty-five percent of the receipts may be deducted from gross receipts;
(2) from July 1, 2008 through June 30, 2009, fifty percent of the receipts may be deducted from gross receipts;
(3) from July 1, 2009 through June 30, 2010, seventy-five percent of the receipts may be deducted from gross receipts; and
(4) after June 30, 2010, all of the receipts may be deducted from gross receipts.
B. The deduction provided by this section shall be separately stated by the taxpayer.
C. For the purposes of this section:
(1) "health care practitioner" means:
(a) a chiropractic physician licensed pursuant to the provisions of the Chiropractic Physician Practice Act;
(b) a dentist or dental hygienist licensed pursuant to the Dental Health Care Act;
(c) a doctor of oriental medicine licensed pursuant to the provisions of the Acupuncture and Oriental Medicine Practice Act;
(d) an optometrist licensed pursuant to the provisions of the Optometry Act;
(e) an osteopathic physician licensed pursuant to the provisions of Chapter 61, Article 10 NMSA 1978 or an osteopathic physician's assistant licensed pursuant to the provisions of the Osteopathic Physicians' Assistants Act;
(f) a physical therapist licensed pursuant to the provisions of the Physical Therapy Act;
(g) a physician or physician assistant licensed pursuant to the provisions of Chapter 61, Article 6 NMSA 1978;
(h) a podiatrist licensed pursuant to the provisions of the Podiatry Act;
(i) a psychologist licensed pursuant to the provisions of the Professional Psychologist Act;
(j) a registered lay midwife registered by the department of health;
(k) a registered nurse or licensed practical nurse licensed pursuant to the provisions of the Nursing Practice Act;
(l) a registered occupational therapist licensed pursuant to the provisions of the Occupational Therapy Act;
(m) a respiratory care practitioner licensed pursuant to the provisions of the Respiratory Care Act;
(n) a speech-language pathologist or audiologist licensed pursuant to the Speech-Language Pathology, Audiology and Hearing Aid Dispensing Practices Act;
(o) a professional clinical mental health counselor, marriage and family therapist or professional art therapist licensed pursuant to the provisions of the Counseling and Therapy Practice Act who has obtained a master's degree or a doctorate; and
(p) an independent social worker licensed pursuant to the provisions of the Social Work Practice Act; and
(2) "health care services" means medical and health services provided by a health care practitioner that are within the scope of practice of the health care practitioner providing the services."
Section 2. Section 7-1-6.46 NMSA 1978 (being Laws 2004, Chapter 116, Section 1, as amended) is amended to read:
"7-1-6.46. DISTRIBUTION TO MUNICIPALITIES--OFFSET FOR FOOD DEDUCTION AND HEALTH CARE PRACTITIONER SERVICES DEDUCTION.--
A. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to a municipality in an amount, subject to any increase or decrease made pursuant to Section 7-1-6.15 NMSA 1978, equal to the sum of:
(1) the total deductions claimed pursuant to Section 7-9-92 NMSA 1978 for the month by taxpayers from business locations attributable to the municipality multiplied by the sum of the combined rate of all municipal local option gross receipts taxes in effect in the municipality for the month plus one and two hundred twenty-five thousandths percent; [and]
(2) the total deductions claimed pursuant to Section 7-9-93 NMSA 1978 for the month by taxpayers from business locations attributable to the municipality multiplied by the sum of the combined rate of all municipal local option gross receipts taxes in effect in the municipality for the month plus one and two hundred twenty-five thousandths percent; and
(3) the total deductions claimed pursuant to Section 7-9-101 NMSA 1978 for the month by taxpayers from business locations attributable to the municipality multiplied by the sum of the combined rate of all municipal local option gross receipts taxes in effect in the municipality for the month plus one and two hundred twenty-five thousandths percent.
B. The distribution pursuant to Subsection A of this section is in lieu of revenue that would have been received by the municipality but for the deductions provided by Sections 7-9-92, [and] 7-9-93 and 7-9-101 NMSA 1978. The distribution shall be considered gross receipts tax revenue and shall be used by the municipality in the same manner as gross receipts tax revenue, including payment of gross receipts tax revenue bonds.
C. For the purposes of this section, "business locations attributable to the municipality" means business locations:
(1) within the municipality;
(2) on land owned by the state, commonly known as the "state fairgrounds", within the exterior boundaries of the municipality;
(3) outside the boundaries of the municipality on land owned by the municipality; and
(4) on an Indian reservation or pueblo grant in an area that is contiguous to the municipality and in which the municipality performs services pursuant to a contract between the municipality and the Indian tribe or Indian pueblo if:
(a) the contract describes an area in which the municipality is required to perform services and requires the municipality to perform services that are substantially the same as the services the municipality performs for itself; and
(b) the governing body of the municipality has submitted a copy of the contract to the secretary.
D. A distribution pursuant to this section may be adjusted for a distribution made to a tax increment development district with respect to a portion of a gross receipts tax increment dedicated by a municipality pursuant to the Tax Increment for Development Act."
Section 3. Section 7-1-6.47 NMSA 1978 (being Laws 2004, Chapter 116, Section 2, as amended) is amended to read:
"7-1-6.47. DISTRIBUTION TO COUNTIES--OFFSET FOR FOOD DEDUCTION AND HEALTH CARE PRACTITIONER SERVICES DEDUCTION.--
A. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to a county in an amount, subject to any increase or decrease made pursuant to Section 7-1-6.15 NMSA 1978, equal to the sum of:
(1) the total deductions claimed pursuant to Section 7-9-92 NMSA 1978 for the month by taxpayers from business locations within a municipality in the county multiplied by the combined rate of all county local option gross receipts taxes in effect for the month that are imposed throughout the county;
(2) the total deductions claimed pursuant to Section 7-9-92 NMSA 1978 for the month by taxpayers from business locations in the county but not within a municipality multiplied by the combined rate of all county local option gross receipts taxes in effect for the month that are imposed in the county area not within a municipality;
(3) the total deductions claimed pursuant to Section 7-9-93 NMSA 1978 for the month by taxpayers from business locations within a municipality in the county multiplied by the combined rate of all county local option gross receipts taxes in effect for the month that are imposed throughout the county; [and]
(4) the total deductions claimed pursuant to Section 7-9-93 NMSA 1978 for the month by taxpayers from business locations in the county but not within a municipality multiplied by the combined rate of all county local option gross receipts taxes in effect for the month that are imposed in the county area not within a municipality;
(5) the total deductions claimed pursuant to Section 7-9-101 NMSA 1978 for the month by taxpayers from business locations within a municipality in the county multiplied by the combined rate of all county local option gross receipts taxes in effect for the month that are imposed throughout the county; and
(6) the total deductions claimed pursuant to Section 7-9-101 NMSA 1978 for the month by taxpayers from business locations in the county but not within a municipality multiplied by the combined rate of all county local option gross receipts taxes in effect for the month that are imposed in the county area not within a municipality.
B. The distribution pursuant to Subsection A of this section is in lieu of revenue that would have been received by the county but for the deductions provided by Sections 7-9-92, [and] 7-9-93 and 7-9-101 NMSA 1978. The distribution shall be considered gross receipts tax revenue and shall be used by the county in the same manner as gross receipts tax revenue, including payment of gross receipts tax revenue bonds.
C. A distribution pursuant to this section may be adjusted for a distribution made to a tax increment development district with respect to a portion of a gross receipts tax increment dedicated by a county pursuant to the Tax Increment for Development Act."
Section 4. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2007.
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