SENATE BILL 475

56th legislature - STATE OF NEW MEXICO - first session, 2023

INTRODUCED BY

Gerald Ortiz y Pino

AN ACT

RELATING TO TAXATION; PROVIDING A GROSS RECEIPTS TAX DEDUCTION FOR SERVICES RENDERED BY PERSONS LICENSED BY THE COUNSELING AND THERAPY PRACTICE ACT.

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--COUNSELORS AND THERAPISTS.--

          A. Prior to July 1, 2028, receipts of a person licensed pursuant to the Counseling and Therapy Practice Act for services rendered may be deducted from gross receipts if the services are within the scope of practice of the person providing the service.

          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. A taxpayer allowed a deduction pursuant to this section shall report the amount of the deduction separately in a manner required by the department.

          D. The department shall compile an annual report on the deduction provided by this section that shall include the number of taxpayers that claimed the deduction, the aggregate amount of deductions claimed and any other information necessary to evaluate the effectiveness of the deduction. The department shall present the annual report to the revenue stabilization and tax policy committee and the legislative finance committee with an analysis of the cost of the deduction."

     SECTION 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2023.

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