SENATE BILL 643

47th legislature - STATE OF NEW MEXICO - first session, 2005

INTRODUCED BY

John Arthur Smith

AN ACT

RELATING TO TAXATION; PROVIDING A CREDIT FOR THE STATE PORTION OF GROSS RECEIPTS TAX FOR HOSPITALS LICENSED BY THE DEPARTMENT OF HEALTH.

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] CREDIT--GROSS RECEIPTS TAX--RECEIPTS OF CERTAIN HOSPITALS.--A hospital licensed by the department of health may claim a credit for each reporting period against the gross receipts tax due for that reporting period as follows:

          A. for a hospital located in a municipality and for a reporting period occurring:

                (1) on or after July 1, 2005 and during the 2005 calendar year, in an amount equal to one and ninety-two thousandths percent of the hospital's taxable gross receipts from providing commercial contract or medicare part C services for that reporting period after the deduction pursuant to Section 7-9-73.1 NMSA 1978 has been taken;  

                (2) during the 2006 calendar year, in an amount equal to two and one hundred eighty-four thousandths percent of the hospital's taxable gross receipts from providing commercial contract or medicare part C services for that reporting period after the deduction pursuant to Section 7-9-73.1 NMSA 1978 has been taken; and

                (3) during the 2007 calendar year or during a subsequent calendar year, in an amount equal to three and two hundred seventy-five thousandths percent of the hospital's taxable gross receipts from providing commercial contract or medicare part C services for that reporting period after the deduction pursuant to Section 7-9-73.1 NMSA 1978 has been taken; and

          B. for a hospital located in the unincorporated area of a county and for a reporting period occurring:

                (1) on or after July 1, 2005 and during the 2005 calendar year, in an amount equal to one and sixty-seven hundredths percent of the hospital's taxable gross receipts from providing commercial contract or medicare part C services for that reporting period after the deduction pursuant to Section 7-9-73.1 NMSA 1978 has been taken;

                (2) during the 2006 calendar year, in an amount equal to three and thirty-four hundredths percent of the hospital's taxable gross receipts from providing commercial contract or medicare part C services for that reporting period after the deduction pursuant to Section 7-9-73.1 NMSA 1978 has been taken; and

                (3) during the 2007 calendar year or during a subsequent calendar year, in an amount equal to five percent of the hospital's taxable gross receipts from providing commercial contract or medicare part C services for that reporting period after the deduction pursuant to Section 7-9-73.1 NMSA 1978 has been taken."

     Section 2. APPLICABILITY.--The provisions of this act apply to reporting periods beginning on or after July 1, 2005.

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