summary
Introduced
02/05/2025
02/05/2025
In Committee
Crossed Over
Passed
Dead
03/22/2025
03/22/2025
Introduced Session
2025 Regular Session
Bill Summary
AN ACT RELATING TO TAXATION; PROVIDING A GROSS RECEIPTS TAX DEDUCTION FOR THE SALE OF MEDICAL EQUIPMENT, SUPPLIES AND DRUGS; PROVIDING A GROSS RECEIPTS TAX DEDUCTION TO RECEIPTS FOR CERTAIN HEALTH CARE SERVICES, EXCEPT FOR THOSE FOR MEDICAID PATIENTS; REMOVING THE SUNSET DATE OF A GROSS RECEIPTS TAX DEDUCTION FOR RECEIPTS FROM COPAYMENTS OR DEDUCTIBLES PAID BY AN INSURED OR ENROLLEE TO A HEALTH CARE PRACTITIONER OR AN ASSOCIATION OF HEALTH CARE PRACTITIONERS; EXTENDING A GROSS RECEIPTS TAX DEDUCTION TO RECEIPTS FROM A PATIENT PAID TO A HEALTH CARE PRACTITIONER OR AN ASSOCIATION OF HEALTH CARE PRACTITIONERS FOR HEALTH CARE SERVICES THAT ARE NOT PERFORMED PURSUANT TO A CONTRACT WITH A MANAGED CARE ORGANIZATION OR HEALTH CARE INSURER; PROVIDING THAT A HEALTH CARE PROVIDER RECEIVING MEDICAID REIMBURSEMENT SHALL BE REIMBURSED FOR ALL APPLICABLE GROSS RECEIPTS TAXES THAT THE PROVIDER IS REQUIRED TO PAY.
AI Summary
This bill makes several changes to gross receipts tax deductions for health care services and medical-related sales in New Mexico. It creates new tax deductions for health care practitioners and their associations, specifically allowing deductions for medical services not performed under managed care contracts, sales of medical equipment and supplies, and sales of medical drugs. The bill removes previous restrictions on fee-for-service payment deductions and eliminates the sunset date for existing copayment and deductible-related tax deductions. Additionally, the bill mandates that health care providers receiving Medicaid reimbursement will be fully reimbursed for any gross receipts taxes they are required to pay. The bill defines numerous terms related to health care practitioners, including a wide range of licensed medical professionals from chiropractors and physicians to mental health counselors and occupational therapists. By expanding and clarifying these tax deductions, the legislation aims to provide financial relief to health care providers and potentially reduce the cost of medical services. The provisions will take effect on July 1, 2025, giving businesses time to prepare for the new tax treatment.
Committee Categories
Budget and Finance
Sponsors (18)
Heather Berghmans (D)*,
Craig Brandt (R)*,
Pete Campos (D),
Joe Cervantes (D),
Crystal Diamond Brantley (R),
Carrie Hamblen (D),
Martin Hickey (D),
Cindy Nava (D),
Michael Padilla (D),
Nicholas Paul (R),
Harold Pope (D),
Bill Sharer (R),
Sarah Silva (D),
Jeff Steinborn (D),
Mimi Stewart (D),
Anthony Thornton (R),
Linda Trujillo (D),
Peter Wirth (D),
Last Action
Senate Tax, Business and Transportation Committee (00:00:00 2/25/2025 Room 321) (on 02/25/2025)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.nmlegis.gov/Legislation/Legislation?chamber=S&legtype=B&legno=295&year=25 |
| Fiscal Note | https://www.nmlegis.gov/Sessions/25%20Regular/firs/SB0295.PDF |
| BillText | https://www.nmlegis.gov/Sessions/25%20Regular/bills/senate/SB0295.pdf |
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