A. Receipts of a health care practitioner or an association of health care practitioners from payments by the United States government or any agency thereof for provision of medical and other health services by a health care practitioner or of medical or other health and palliative services by hospices or nursing homes to medicare beneficiaries pursuant to the provisions of Title 18 of the federal Social Security Act may be deducted from gross receipts.
B. Receipts of a health care practitioner or an association of health care practitioners from payments by a third-party administrator of the federal TRICARE program for provision of medical and other health services by medical doctors and osteopathic physicians to covered beneficiaries may be deducted from gross receipts.
C. Receipts of a health care practitioner or an association of health care practitioners from payments by or on behalf of the Indian health service of the United States department of health and human services for provision of medical and other health services by medical doctors and osteopathic physicians to covered beneficiaries may be deducted from gross receipts.
D. Receipts of a clinical laboratory from payments by the United States government or any agency thereof for medical services provided by the clinical laboratory to medicare beneficiaries pursuant to the provisions of Title 18 of the federal Social Security Act may be deducted from gross receipts.
E. Receipts of a home health agency from payments by the United States government or any agency thereof for medical, other health and palliative services provided by the home health agency to medicare beneficiaries pursuant to the provisions of Title 18 of the federal Social Security Act may be deducted from gross receipts.
F. Prior to July 1, 2024, receipts of a dialysis facility from payments by the United States government or any agency thereof for medical and other health services provided by the dialysis facility to medicare beneficiaries pursuant to the provisions of Title 18 of the federal Social Security Act may be deducted from gross receipts.
G. A taxpayer allowed a deduction pursuant to this section shall report the amount of the deduction separately in a manner required by the department. A taxpayer who has receipts that are deductible pursuant to this section and Section 7-9-93 NMSA 1978 shall deduct the receipts under this section prior to calculating the receipts that may be deducted pursuant to Section 7-9-93 NMSA 1978.
H. The department shall compile an annual report on the deductions created pursuant to this section that shall include the number of taxpayers approved by the department to receive each deduction, the aggregate amount of deductions approved and any other information necessary to evaluate the effectiveness of the deductions. The department shall compile and present the annual reports to the revenue stabilization and tax policy committee and the legislative finance committee with an analysis of the effectiveness and cost of the deductions and whether the deductions are providing a benefit to the state.
I. For the purposes of this section:
(1) "association of health care practitioners" means a corporation, unincorporated business entity or other legal entity organized by, owned by or employing one or more health care practitioners; provided that the entity is not:
(a) an organization granted exemption from the federal income tax by the United States commissioner of internal revenue as organizations described in Section 501(c)(3) of the United States Internal Revenue Code of 1986, as that section may be amended or renumbered; or
(b) a health maintenance organization, hospital, hospice, nursing home or an entity that is solely an outpatient facility or intermediate care facility licensed pursuant to the Public Health Act [Chapter 24, Article 1 NMSA 1978];
(2) "clinical laboratory" means a laboratory accredited pursuant to 42 USCA 263a;
(3) "dialysis facility" means an end-stage renal disease facility as defined pursuant to 42 C.F.R. 405.2102;
(4) "health care practitioner" means:
(a) an athletic trainer licensed pursuant to the Athletic Trainer Practice Act [Chapter 61, Article 14D NMSA 1978];
(b) an audiologist licensed pursuant to the Speech-Language Pathology, Audiology and Hearing Aid Dispensing Practices Act [Chapter 61, Article 14B NMSA 1978];
(c) a chiropractic physician licensed pursuant to the Chiropractic Physician Practice Act [Chapter 61, Article 4 NMSA 1978];
(d) a counselor or therapist practitioner licensed pursuant to the Counseling and Therapy Practice Act [Chapter 61, Article 9A NMSA 1978];
(e) a dentist licensed pursuant to the Dental Health Care Act [Chapter 61, Article 5A NMSA 1978];
(f) a doctor of oriental medicine licensed pursuant to the Acupuncture and Oriental Medicine Practice Act [Chapter 61, Article 14A NMSA 1978];
(g) an independent social worker licensed pursuant to the Social Work Practice Act [Chapter 61, Article 31 NMSA 1978];
(h) a massage therapist licensed pursuant to the Massage Therapy Practice Act [Chapter 61, Article 12C NMSA 1978];
(i) a naprapath licensed pursuant to the Naprapathic Practice Act [61-12F-1 to 61-12F-11 NMSA 1978];
(j) a nutritionist or dietitian licensed pursuant to the Nutrition and Dietetics Practice Act [61-7A-1 to 61-7A-15 NMSA 1978];
(k) an occupational therapist licensed pursuant to the Occupational Therapy Act [Chapter 61, Article 12A NMSA 1978];
(l) an optometrist licensed pursuant to the Optometry Act [Chapter 61, Article 2 NMSA 1978];
(m) an osteopathic physician licensed pursuant to the Medical Practice Act [Chapter 61, Article 6 NMSA 1978];
(n) a pharmacist licensed pursuant to the Pharmacy Act [Chapter 61, Article 11 NMSA 1978];
(o) a physical therapist licensed pursuant to the Physical Therapy Act [61-12D-1 to 61-12D-19 NMSA 1978];
(p) a physician licensed pursuant to the Medical Practice Act;
(q) a podiatrist licensed pursuant to the Podiatry Act [Chapter 61, Article 8 NMSA 1978];
(r) a psychologist licensed pursuant to the Professional Psychologist Act [Chapter 61, Article 9 NMSA 1978];
(s) a radiologic technologist licensed pursuant to the Medical Imaging and Radiation Therapy Health and Safety Act [Chapter 61, Article 14E NMSA 1978];
(t) a registered nurse licensed pursuant to the Nursing Practice Act [Chapter 61, Article 3 NMSA 1978];
(u) a respiratory care practitioner licensed pursuant to the Respiratory Care Act [Chapter 61, Article 12B NMSA 1978]; and
(v) a speech-language pathologist licensed pursuant to the Speech-Language Pathology, Audiology and Hearing Aid Dispensing Practices Act [Chapter 61, Article 14B NMSA 1978];
(5) "home health agency" means a for-profit entity that is licensed by the department of health and certified by the federal centers for medicare and medicaid services as a home health agency and certified to provide medicare services;
(6) "hospice" means a for-profit entity licensed by the department of health as a hospice and certified to provide medicare services;
(7) "nursing home" means a for-profit entity licensed by the department of health as a nursing home and certified to provide medicare services; and
(8) "TRICARE program" means the program defined in 10 U.S.C. 1072(7).
History: 1978 Comp., § 7-9-77.1, enacted by Laws 1998, ch. 96, § 1; 2000 (2nd S.S.), ch. 16, § 1; 2003, ch. 350, § 1; 2003, ch. 351, § 1; 2005, ch. 91, § 1; 2007, ch. 361, § 4; 2014, ch. 56, § 1; 2016 (2nd S.S.), ch. 3, § 4; 2021, ch. 54, § 1; 2021, ch. 65, § 24.
Cross references. — For the provisions of Title XVIII of the federal Social Security Act, see 42 U.S.C. § 1395 et seq.
2021 Multiple Amendments. — Laws 2021, ch. 54, § 1, effective June 18, 2021, and Laws 2021, ch. 65, § 24, effective July 1, 2021, enacted different amendments to this section that can be reconciled. Pursuant to 12-1-8 NMSA 1978, Laws 2021, ch. 65, § 24 as the last act signed by the governor is set out above and incorporates both amendments. The amendments enacted by Laws 2021, ch. 54, § 1 and Laws 2021, ch. 65, § 24 are described below. To view the session laws in their entirety, see the 2021 session laws on NMOneSource.com.
The nature of the difference between the amendments is that Laws 2021, ch. 54, § 1, removed osteopathic physicians licensed pursuant to the Osteopathic Medicine Act from the definition of "health care practitioner", and added osteopathic physicians licensed pursuant to the Medical Practice Act to the definition of "health care practitioner", and Laws 2021, ch. 65, § 24, provided that associations of health care practitioners are eligible to claim certain gross receipts tax deductions, and defined "association of health care practitioners" for purposes of this section.
Laws 2021, ch. 65, § 24, effective July 1, 2021, provided that associations of health care practitioners are eligible to claim certain gross receipts tax deductions, and defined "association of health care practitioners" for purposes of this section; in Subsection A, after "Receipts of a health care practitioner", added "or an association of health care practitioners"; in Subsection B, after "Receipts of a health care practitioner", added "or an association of health care practitioners"; in Subsection C, after "Receipts of a health care practitioner", added "or an association of health care practitioners"; and in Subsection I, added a new Paragraph I(1) and redesignated former Paragraphs I(1) through I(7) as Paragraphs I(2) through I(8), respectively.
Laws 2021, ch. 54, § 1, effective June 18, 2021, removed osteopathic physicians licensed pursuant to the Osteopathic Medicine Act from the definition of "health care practitioner", and added osteopathic physicians licensed pursuant to the Medical Practice Act to the definition of "health care practitioner"; and in Subsection I, Subparagraph I(3)(m), after "pursuant to the", deleted "Osteopathic Medicine" and added "Medical Practice".
The 2016 (2nd S.S.) amendment, effective November 1, 2016, clarified the type of health care provider that may take certain gross receipts tax deductions for medical and health care services; in Subsection A, after "Receipts", added "of a health care practitioner", after "health services by", deleted "medical doctors, osteopathic physicians, doctors of oriental medicine, athletic trainers, chiropractic physicians, counselor and therapist practitioners, dentists, massage therapists, naprapaths, nurses, nutritionists, dietitians, occupational therapists, optometrists, pharmacists, physical therapists, psychologists, radiologic technologists, respiratory care practitioners, audiologists, speech-language pathologists, social workers and podiatrists" and added "a health care practitioner", and after "or of medical", added "or"; in Subsection B, after "Receipts", added "of a health care practitioner"; in Subsection C, after "Receipts", added "of a health care practitioner"; in Subsection D, after "Receipts", added "of a clinical laboratory"; in Subsection E, after "Receipts", added "of a home health agency"; in Subsection F, after "receipts", added "of a dialysis facility", after "services provided by a", deleted "a" and added "the", after "deducted from gross receipts", deleted "according to the following schedule:" and deleted Paragraphs F(1) through F(3), relating to deductions from gross receipts; in Subsection G, after the first sentence, added the second sentence; in Subsection H, after "evaluate the effectiveness of the deductions.", deleted "Beginning in 2020 and every five years thereafter that this section is in effect"; in Subsection I, deleted Paragraphs I(1) and I(2) and redesignated former Paragraph I(3) as Paragraph I(1); deleted Paragraphs I(4) and I(5) and redesignated former Paragraph I(6) as Paragraph I(2), deleted Paragraph I(7), added new Paragraph I(3) and redesignated former Paragraphs I(8) and I(9) as Paragraph I(4) and I(5), respectively, deleted Paragraphs I(10) through I(13) and redesignated former Paragraph I(14) as Paragraph I(6), deleted Paragraphs I(15) through I(26) and redesignated former Paragraph I(27) as Paragraph I(7).
The 2014 amendment, effective July 1, 2014, provided a deduction from gross receipts of payments for services rendered by dialysis facilities; added Subsections F, G and H; and in Subsection I, added Paragraph (6).
The 2007 amendment, effective July 1, 2007, eliminated the schedules of deductible receipts for the years 2003 through 2005; expanded the list of health care providers who may deduct receipts from the United States government and its agencies; added Subsection C; and added Paragraphs (1), (2), (4) through (6), (9), (11), (12), (14), (15), and (17) through (25) of Subsection F.
The 2005 amendment, effective June 17, 2005, added Subsection C to provide a deduction for certain payments by the United States for medical services provided by a clinical laboratory; added Subsection D to provide a deduction for certain payments by the United States for medical, other health and palliative services provided to a home health agency; requireed that "hospice" be certified to provide medicare services; and in Subsection E, defined "clinical laboratory", "home health agency" and "nursing home".
The 2003 amendment, effective July 1, 2003, in Subsection A, substituted "osteopathic physicians and podiatrists" for "osteopaths"; redesignated former Subsection B as C and added present Subsection B; in Subsection C, rewrote Paragraph C(2) and added Paragraphs C(3) and (4).
The 2000 amendment, effective July 1, 2000, deleted former Subsections A & B, concerning deductions from gross receipts from specific dates, and redesignated the remaining subsections accordingly; in present Subsection A, deleted "on or after July 1, 2000" following "Receipts" and inserted "or of medical, other health and palliative services by a hospice"; and in present Subsection B, added Paragraph (1) and designated the remaining section text as Paragraph (2).
Structure 2021 New Mexico Statutes
Article 9 - Gross Receipts and Compensating Tax
Section 7-9-3 - Definitions. (Effective January 1, 2022.)
Section 7-9-3.2 - Additional definition.
Section 7-9-3.3 - Definition; engaging in business.
Section 7-9-3.5 - Definition; gross receipts.
Section 7-9-4 - Imposition and rate of tax; denomination as "gross receipts tax".
Section 7-9-4.3 - Imposition and rate of tax; denomination as "governmental gross receipts tax".
Section 7-9-5 - Presumption of taxability.
Section 7-9-6 - Separately stating the gross receipts tax.
Section 7-9-7 - Imposition and rate of tax; denomination as "compensating tax".
Section 7-9-7.2 - Authority to establish standards for certified service providers.
Section 7-9-8 - Presumption of taxability and value.
Section 7-9-9 - Liability of user for payment of compensating tax.
Section 7-9-10 - Agents for collection of compensating tax; duties.
Section 7-9-11 - Date payment due.
Section 7-9-13 - Exemption; gross receipts tax; governmental agencies.
Section 7-9-13.1 - Exemption; gross receipts tax; certain services.
Section 7-9-14 - Exemption; compensating tax; governmental agencies; Indians.
Section 7-9-15 - Exemption; compensating tax; certain organizations.
Section 7-9-16 - Exemption; gross receipts tax; certain nonprofit facilities.
Section 7-9-17 - Exemption; gross receipts tax; wages.
Section 7-9-18.1 - Exemption; gross receipts tax; food stamps.
Section 7-9-19 - Exemption; gross receipts tax; livestock feeding.
Section 7-9-20 - Exemption; gross receipts tax; certain receipts of homeowners associations.
Section 7-9-22 - Exemption; gross receipts tax; vehicles.
Section 7-9-22.1 - Exemption; gross receipts tax; boats.
Section 7-9-23 - Exemption; compensating tax; vehicles.
Section 7-9-23.1 - Exemption; compensating tax; boats.
Section 7-9-24 - Exemption; gross receipts tax; insurance companies.
Section 7-9-25 - Exemption; gross receipts tax; dividends and interest.
Section 7-9-26 - Exemption; gross receipts and compensating tax; fuel.
Section 7-9-26.1 - Exemption; gross receipts tax and compensating tax; fuel for space vehicles.
Section 7-9-27 - Exemption; compensating tax; personal effects.
Section 7-9-28 - Exemption; gross receipts tax; occasional sale of property or services.
Section 7-9-29 - Exemption; gross receipts tax; certain organizations; exceptions.
Section 7-9-30 - Exemption; compensating tax; railroad equipment, aircraft and space vehicles.
Section 7-9-32 - Exemption; gross receipts tax; oil and gas or mineral interests.
Section 7-9-38.1 - Exemption; gross receipts tax; interstate telecommunications services.
Section 7-9-38.2 - Exemption; gross receipts tax; sale of certain telecommunications services.
Section 7-9-39 - Exemption; gross receipts tax; fees from social organizations.
Section 7-9-41 - Exemption; gross receipts tax; religious activities.
Section 7-9-41.3 - Exemption; receipts from sales by disabled street vendors.
Section 7-9-41.5 - Exemption; nonprofit hospitals from local option gross receipts taxes.
Section 7-9-43.1 - Nontaxable transaction certificates not required by liquor wholesalers.
Section 7-9-46 - Deduction; gross receipts tax; governmental gross receipts; sales to manufacturers.
Section 7-9-50 - Deduction; gross receipts tax; lease for subsequent lease.
Section 7-9-54.4 - Deduction; compensating tax; space-related test articles.
Section 7-9-54.5 - Deduction; compensating tax; test articles.
Section 7-9-56.1 - Deduction; gross receipts tax; internet services.
Section 7-9-56.2 - Deduction; gross receipts tax; hosting world wide web sites.
Section 7-9-56.3 - Deduction; gross receipts; trade-support company in a border zone.
Section 7-9-57 - Deduction; gross receipts tax; sale of certain services to an out-of-state buyer.
Section 7-9-57.2 - Deduction; gross receipts tax; sale of software development services.
Section 7-9-58 - Deduction; gross receipts tax; feed; fertilizers.
Section 7-9-61.1 - Deduction; gross receipts tax; certain receipts.
Section 7-9-61.2 - Deduction; receipts from sales to state-chartered credit unions.
Section 7-9-63 - Deduction; gross receipts tax; publication sales.
Section 7-9-64 - Deduction; gross receipts tax; newspaper sales.
Section 7-9-65 - Deduction; gross receipts tax; chemicals and reagents.
Section 7-9-66 - Deduction; gross receipts tax; commissions.
Section 7-9-66.1 - Deduction; gross receipts tax; certain real estate transactions.
Section 7-9-68 - Deduction; gross receipts tax; warranty obligations.
Section 7-9-69 - Deduction; gross receipts tax; administrative and accounting services.
Section 7-9-71 - Deduction; gross receipts tax; trade-in allowance.
Section 7-9-73.1 - Deduction; gross receipts; governmental gross receipts; hospitals.
Section 7-9-74 - Deduction; gross receipts tax; sale of property used in the manufacture of jewelry.
Section 7-9-76 - Deduction; gross receipts tax; travel agents' commissions paid by certain entities.
Section 7-9-76.1 - Deduction; gross receipts tax; certain manufactured homes.
Section 7-9-76.2 - Deduction; gross receipts tax; films and tapes.
Section 7-9-77 - Deductions; compensating tax.
Section 7-9-77.1 - Deduction; gross receipts tax; certain medical and health care services.
Section 7-9-78 - Deductions; compensating tax; use of tangible personal property for leasing.
Section 7-9-78.1 - Deduction; compensating tax; uranium enrichment plant equipment.
Section 7-9-79 - Credit; compensating tax.
Section 7-9-79.1 - Credit; gross receipts tax; services.
Section 7-9-79.2 - Gross receipts tax; compensating tax; biodiesel blending facility tax credit.
Section 7-9-83 - Deduction; gross receipts tax; jet fuel.
Section 7-9-84 - Deduction; compensating tax; jet fuel.
Section 7-9-85 - Deduction; gross receipts tax; certain organization fundraisers.
Section 7-9-86 - Deduction; gross receipts tax; sales to qualified film production company.
Section 7-9-87 - Deduction; gross receipts tax; lottery retailer receipts.
Section 7-9-88.1 - Credit; gross receipts tax; tax paid to certain tribes.
Section 7-9-92 - Deduction; gross receipts; sale of food at retail food store.
Section 7-9-94 - Deduction; gross receipts; military transformational acquisition programs.
Section 7-9-96.2 - Credit; gross receipts tax; unpaid charges for services provided in a hospital.
Section 7-9-98 - Deduction; compensating tax; biomass-related equipment; biomass materials.
Section 7-9-103.1 - Deduction; gross receipts tax; converting electricity.
Section 7-9-103.2 - Deduction; gross receipts; electricity exchange.
Section 7-9-105 - Credit for penalty pursuant to Section 7-1-71.2 NMSA 1978 [repealed].
Section 7-9-106 - Deduction; construction services and equipment.
Section 7-9-107 - Deduction; gross receipts tax; production or staging of professional contests.
Section 7-9-110.1 - Deduction; gross receipts tax; locomotive engine fuel.
Section 7-9-110.2 - Deduction; compensating tax; locomotive engine fuel.
Section 7-9-110.3 - Purpose and requirements of locomotive fuel deduction.
Section 7-9-111 - Deduction; gross receipts; hearing aids and vision aids and related services.
Section 7-9-112 - Deduction; gross receipts; solar energy systems.
Section 7-9-114 - Advanced energy deduction; gross receipts and compensating taxes.
Section 7-9-116 - Deduction; gross receipts tax; retail sales by certain businesses.
Section 7-9-117 - Deduction; gross receipts; governmental gross receipts; marketplace seller.
Section 7-9-118 - Deduction; gross receipts; food or beverage establishments.
Section 7-9-119 - Deduction; sales made by dispenser's license holder.