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| SPONSOR: | Sandoval | DATE TYPED: | 02/26/02 | HB | 882 | ||
| SHORT TITLE: | Health & Laboratory Services Tax Deduction | SB | |||||
| ANALYST: | Eaton | ||||||
| Subsequent
Years Impact |
Recurring
or Non-Rec |
Fund
Affected | ||
| FY01 | FY02 | |||
| $ (83,200.0) | $ (92,100.0) | Recurring | General Fund | |
| $ (35,700.0) | $ (41,200.0) | Recurring | Local Govt. | |
(Parenthesis ( ) Indicate Revenue Decreases)
SOURCES OF INFORMATION
Taxation and Revenue Department (TRD)
SUMMARY
Synopsis of Bill
This bill provides for gross receipts tax deduction for all health care services of all kinds. This includes the list of health care practitioners proposed in many bills this session (physicians, osteopathic physicians, chiropractic physicians, physician assistants, dentists, dental hygienists, doctors of oriental medicine, podiatrists, psychologists, RNs and LPNs, registered lay midwives, physical therapists, occupational therapists and respiratory care practitioners) and adds optometrists. Receipts from selling prosthetic devices (wholesale or retail) may be deducted. Medical laboratory services, even if not provided by an MD, may be deducted. All the remaining receipts of for-profit hospitals may be deducted. Nursing home receipts may be deducted. To level the playing field, the bill also proposes to repeal the 3% premiums tax on health care insurance policies.
Significant Issues
The Taxation and Revenue Department (TRD) report that total personal health care in New Mexico is estimated to be $6.4 billion in FY02. This implies that only 19 percent of health care expenses in the state are paid by private insurance.
FISCAL IMPLICATIONS
The Taxation and Revenue Department (TRD) provided the following five year estimate of impacts. Not included in the deduction are: blood banks, home health care agencies, non-PA ambulance services, family planning centers and cosmetic surgery. TRD defers to the Department of Insurance of the Public Regulation Commission (PRC) for the premiums tax impacts. Legislative Finance Committee staff estimated insurance premiums tax for FY05 and FY06.
ADMINISTRATIVE IMPLICATIONS
Minimal.
JBE/njw