A. Receipts of a health care practitioner or an association of health care practitioners for commercial contract services or medicare part C services paid by a managed health care provider or health care insurer may be deducted from gross receipts if the services are within the scope of practice of the health care practitioner providing the service. Receipts from fee-for-service payments by a health care insurer may not be deducted from gross receipts.
B. The deduction provided by this section shall be applied only to gross receipts remaining after all other allowable deductions available under the Gross Receipts and Compensating Tax Act have been taken and shall be separately stated by the taxpayer.
C. 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) "commercial contract services" means health care services performed by a health care practitioner pursuant to a contract with a managed health care provider or health care insurer other than those health care services provided for medicare patients pursuant to Title 18 of the federal Social Security Act or for medicaid patients pursuant to Title 19 or Title 21 of the federal Social Security Act;
(3) "health care insurer" means a person that:
(a) has a valid certificate of authority in good standing pursuant to the New Mexico Insurance Code [59A-1-1 NMSA 1978] to act as an insurer, health maintenance organization or nonprofit health care plan or prepaid dental plan; and
(b) contracts to reimburse licensed health care practitioners for providing basic health services to enrollees at negotiated fee rates;
(4) "health care practitioner" means:
(a) a chiropractic physician licensed pursuant to the provisions of the Chiropractic Physician Practice Act [Chapter 61, Article 4 NMSA 1978];
(b) a dentist or dental hygienist licensed pursuant to the Dental Health Care Act [Chapter 61, Article 5A NMSA 1978];
(c) a doctor of oriental medicine licensed pursuant to the provisions of the Acupuncture and Oriental Medicine Practice Act [Chapter 61, Article 14A NMSA 1978];
(d) an optometrist licensed pursuant to the provisions of the Optometry Act [Chapter 61, Article 2 NMSA 1978];
(e) an osteopathic physician or an osteopathic physician assistant licensed pursuant to the provisions of the Osteopathic Medicine Act [Chapter 61, Article 10 NMSA 1978];
(f) a physical therapist licensed pursuant to the provisions of the Physical Therapy Act [61-12D-1 to 61-12D-19 NMSA 1978];
(g) a physician or physician assistant licensed pursuant to the provisions of the Medical Practice Act [Chapter 61, Article 6 NMSA 1978];
(h) a podiatrist licensed pursuant to the provisions of the Podiatry Act [Chapter 61, Article 8 NMSA 1978];
(i) a psychologist licensed pursuant to the provisions of the Professional Psychologist Act [Chapter 61, Article 9 NMSA 1978];
(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 [Chapter 61, Article 3 NMSA 1978];
(l) a registered occupational therapist licensed pursuant to the provisions of the Occupational Therapy Act [Chapter 61, Article 12A NMSA 1978];
(m) a respiratory care practitioner licensed pursuant to the provisions of the Respiratory Care Act [Chapter 61, Article 12B NMSA 1978];
(n) a speech-language pathologist or audiologist licensed pursuant to the Speech-Language Pathology, Audiology and Hearing Aid Dispensing Practices Act [Chapter 61, Article 14B NMSA 1978];
(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 [Chapter 61, Article 9A NMSA 1978] who has obtained a master's degree or a doctorate;
(p) an independent social worker licensed pursuant to the provisions of the Social Work Practice Act [Chapter 61, Article 31 NMSA 1978; and
(q) a clinical laboratory that is accredited pursuant to 42 U.S.C. Section 263a but that is not a laboratory in a physician's office or in a hospital defined pursuant to 42 U.S.C. Section 1395x;
(5) "managed health care provider" means a person that provides for the delivery of comprehensive basic health care services and medically necessary services to individuals enrolled in a plan through its own employed health care providers or by contracting with selected or participating health care providers. "Managed health care provider" includes only those persons that provide comprehensive basic health care services to enrollees on a contract basis, including the following:
(a) health maintenance organizations;
(b) preferred provider organizations;
(c) individual practice associations;
(d) competitive medical plans;
(e) exclusive provider organizations;
(f) integrated delivery systems;
(g) independent physician-provider organizations;
(h) physician hospital-provider organizations; and
(i) managed care services organizations; and
(6) "medicare part C services" means services performed pursuant to a contract with a managed health care provider for medicare patients pursuant to Title 18 of the federal Social Security Act.
History: Laws 2004, ch. 116, § 6; 2006, ch. 36, § 1; 2007, ch. 361, § 5; 2016 (2nd S.S.), ch. 3, § 5; 2021, ch. 65, § 27.
The 2021 amendment, 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"; and in Subsection C, added new Paragraph C(1) and redesignated former Paragraphs C(1) through C(5) as Paragraphs C(2) through C(6), respectively.
The 2016 (2nd S.S.) amendment, effective November 1, 2016, clarified the types of receipts of a health care practitioner that may be deducted from gross receipts; in Subsection A, after "Receipts", deleted "from payments by a managed health care provider or health care insurer" and added "of a health care practitioner", after "medicare Part C services", deleted "provided by a health care practitioner that are not otherwise deductible pursuant to another provision of the Gross Receipts and Compensating Tax Act" and added "paid by a managed health care provider or health care insurer", after "deducted from gross receipts", deleted "provided that" and added "if", after "scope of practice of the", deleted "person" and added "health care practitioner"; added a new subsection designation "B" and redesignated former Subsection B as Subsection C; in Subsection B, after "The deduction provided by this section shall be", added "applied only to gross receipts remaining after all other allowable deductions available under the Gross Receipts and Compensating Tax Act have been taken and shall be"; in Subparagraph C(3)(e), after "osteopathic physician", deleted "licensed pursuant to the provisions of Chapter 61, Article 10 NMSA 1978", and after "Osteopathic", deleted "Physicians' Assistants" and added "Medicine"; and in Subparagraph C(3)(g), after "pursuant to the provisions of", deleted "Chapter 61, Article 6 NMSA 1978" and added "the Medical Practice Act".
The 2007 amendment, effective July 1, 2007, added Subparagraph (q) of Paragraph (3) of Subsection B.
The 2006 amendment, effective July 1, 2006, added Subparagraphs (o) and (p) of Paragraph (3) of Subsection B to provide that the definition of "health care practitioner" includes licensed professional clinical mental health counselors, marriage and family therapists and professional art therapists and licensed independent social workers.
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.