45th legislature - STATE OF NEW MEXICO - first session, 2001

RELATING TO TAXATION; PROVIDING GROSS RECEIPTS TAX DEDUCTIONS FOR THE SERVICES OF MEDICAL DOCTORS AND OSTEOPATHIC PHYSICIANS AND THE RECEIPTS OF FOR-PROFIT HOSPITALS, NURSING HOMES AND SIMILAR RESIDENTIAL CARE FACILITIES; AUTHORIZING IMPOSITION OF AN ADDITIONAL INCREMENT OF THE MUNICIPAL INFRASTRUCTURE GROSS RECEIPTS TAX AND A NEW SUPPLEMENTAL COUNTY GROSS RECEIPTS TAX; AMENDING AND ENACTING SECTIONS OF THE NMSA 1978.

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 is enacted to read:

"[NEW MATERIAL] DEDUCTION--GROSS RECEIPTS TAX--NURSING HOMES AND RESIDENTIAL CARE FACILITIES.--The receipts of for-profit entities that are licensed by the department of health as nursing homes, adult residential care facilities or intermediate care facilities for the mentally retarded may be deducted from gross receipts."

Section 2. Section 7-9-73.1 NMSA 1978 (being Laws 1991, Chapter 8, Section 3, as amended) is amended to read:

"7-9-73.1. DEDUCTION--GROSS RECEIPTS--HOSPITALS.--[Fifty percent of] The receipts of hospitals licensed by the department of health may be deducted from gross receipts; provided, this deduction may be applied only to the taxable gross receipts remaining after all other appropriate deductions have been taken."

Section 3. Section 7-9-77.1 NMSA 1978 (being Laws 1998, Chapter 96, Section 1, as amended) is amended to read:

"7-9-77.1. DEDUCTION--GROSS RECEIPTS TAX--CERTAIN MEDICAL AND HEALTH CARE SERVICES.--

A. Receipts from payments by the United States government or any agency thereof for provision of medical and [other health services by medical doctors and osteopaths or of medical] other health and palliative services by a hospice to medicare beneficiaries pursuant to the provisions of Title [XVIII] 18 of the federal Social Security Act may be deducted from gross receipts.

B. Receipts for services provided by medical doctors and osteopathic physicians may be deducted from gross receipts.

[B.] C.  For the purposes of this section:

(1) "hospice" means a for-profit entity licensed and certified by the department of health as a hospice; [and]

(2) "medical doctors [and osteopaths]" means [persons] physicians licensed to practice [under Section 61-6-11 or 61-10-11 NMSA 1978] medicine pursuant to the provisions of the Medical Practice Act; and

(3) "osteopathic physicians" means persons licensed to practice as osteopathic physicians pursuant to the provisions of Chapter 61, Article 10 NMSA 1978."

Section 4. Section 7-19D-11 NMSA 1978 (being Laws 1991, Chapter 9, Section 3, as amended) is amended to read:

"7-19D-11. MUNICIPAL INFRASTRUCTURE GROSS RECEIPTS TAX--AUTHORITY BY MUNICIPALITY TO IMPOSE--ORDINANCE REQUIREMENTS--ELECTION.--

A. A majority of the members of the governing body of a municipality may enact an ordinance imposing an excise tax on any person engaging in business in the municipality for the privilege of engaging in business. The rate of the tax shall not exceed [one-fourth] three-eighths of one percent of the gross receipts of the person engaging in business and may be imposed in one-sixteenth of one percent increments by separate ordinances. Any ordinance enacting any increment of the first one-eighth or third one-eighth of one percent of the tax is not subject to a referendum of any kind, notwithstanding any requirement of any charter municipality, except that an increment that is imposed after July 1, 1998 for economic development purposes set forth in Paragraph (5) of Subsection C of this section shall be subject to a referendum as provided in Subsection D of this section.

B. The tax imposed pursuant to Subsection A of this section may be referred to as the "municipal infrastructure gross receipts tax".

C. The governing body of a municipality, at the time of enacting any ordinance imposing the rate of the tax authorized in Subsection A of this section, may dedicate the revenue for:

(1) payment of special obligation bonds issued pursuant to a revenue bond act;

(2) repair, replacement, construction or acquisition of infrastructure improvements, including [but not limited to] sanitary sewer lines, storm sewers and other drainage improvements, water, water rights, water lines and utilities, streets, alleys, rights of way, easements, international ports of entry and land within the municipality or within the extraterritorial zone of the municipality;

(3) municipal general purposes;

(4) acquiring, constructing, extending, bettering, repairing or otherwise improving or operating or maintaining public transit systems or regional transit systems or authorities; and

(5) furthering or implementing economic development plans and projects as defined in the Local Economic Development Act, and use of not more than the greater of fifty thousand dollars ($50,000) or ten percent of the revenue collected for promotion and administration of or professional services contracts related to implementation of an economic development plan adopted by the governing body pursuant to the Local Economic Development Act and in accordance with law.

D. An ordinance imposing any increment of the municipal infrastructure gross receipts tax in excess of the first one-eighth of one percent or any increment imposed after July 1, 1998 for economic development purposes set forth in Paragraph (5) of Subsection C of this section shall not go into effect until after an election is held and a majority of the voters of the municipality voting in the election votes in favor of imposing the tax. The governing body shall adopt a resolution calling for an election within seventy-five days of the date the ordinance is adopted on the question of imposing the tax. The question shall be submitted to the voters of the municipality as a separate question at a regular municipal election or at a special election called for that purpose by the governing body. A special municipal election shall be called, conducted and canvassed as provided in the Municipal Election Code. If a majority of the voters voting on the question approves the ordinance imposing the municipal infrastructure gross receipts tax, then the ordinance shall become effective in accordance with the provisions of the Municipal Local Option Gross Receipts Taxes Act. If the question of imposing the municipal infrastructure gross receipts tax fails, the governing body shall not again propose the imposition of any increment of the tax in excess of the first one-eighth of one percent for a period of one year from the date of the election."

Section 5. A new section of the County Local Option Gross Receipts Taxes Act is enacted to read:

"[NEW MATERIAL] SUPPLEMENTAL COUNTY GROSS RECEIPTS TAX--AUTHORITY TO IMPOSE--RATE--USE OF PROCEEDS.--

A. The majority of the members of the governing body of a county may enact an ordinance imposing an excise tax at a rate of one-sixteenth of one percent of the gross receipts of any person engaging in business in the county for the privilege of engaging in business in the county. The ordinance imposing an excise tax pursuant to this section shall not be subject to a referendum.

B. The tax imposed pursuant to Subsection A of this section may be referred to as the "supplemental county gross receipts tax".

C. The governing body of a county, at the time of enacting an ordinance imposing the tax in Subsection A of this section, may dedicate the revenue for any county general purpose, including any infrastructure acquisition, repair, construction or improvement, or for payment of gross receipts tax revenue bonds or hospital emergency gross receipts tax revenue bonds issued pursuant to Chapter 4, Article 62 NMSA 1978. The revenue may also be dedicated for any county health facility purposes pursuant to the Local Hospital Gross Receipts Tax Act or Section 7-20E-12.1, 7-20E-13 or 7-20E-18 NMSA 1978 and may be pledged for payment of any revenue bonds issued pursuant to the Local Hospital Gross Receipts Tax Act."

Section 6. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2001.