Bill > SB88

This bill establishes a new deduction for gross receipts tax and governmental gross receipts tax on the sale or rental of durable medical equipment and medical supplies, as well as infusion therapy services including related medications, for transactions occurring before July 1, 2020. The purpose of this deduction is to support New Mexico businesses in this sector and retain jobs. To qualify for this deduction, a taxpayer must participate in the New Mexico Medicaid program and derive at least ninety percent of their gross receipts from the sale or rental of durable medical equipment, medical supplies, or infusion therapy services. The bill defines "durable medical equipment" as reusable medical assistive devices prescribed by a licensed professional, "infusion therapy services" as the administration of prescribed medication via needle or catheter, and "medical supplies" as necessary, disposable items for medical treatment also prescribed by a licensed professional. Taxpayers claiming this deduction must report it separately and authorize the release of information to legislative committees for analysis of the deduction's effectiveness and cost. The department will compile annual reports on approved deductions and their impact, with more comprehensive analyses presented every five years starting in 2019. The provisions of this act become effective on July 1, 2014.