[1] NOTE:  As provided in LFC policy, this report is intended only for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

 

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F I S C A L   I M P A C T   R E P O R T

 

 

 

SPONSOR:

Park

 

DATE TYPED:

02/01/02

 

HB

411

 

SHORT TITLE:

Osteopath Gross Receipts Deduction

 

SB

 

 

 

ANALYST:

Gilbert

 

 

REVENUE

 

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY02

FY03

 

 

 

 

$                       (0.1)

*See Narrative

*See Narrative

Recurring

General Fund

 

$                        (0.1)

*See Narrative

*See Narrative

Recurring

Local Government

(Parenthesis ( ) Indicate Revenue Decreases)

 

Relates to HB 394

 

SOURCES OF INFORMATION

 

LFC Files

 

No Response Received

Taxation and Revenue Department (TRD)

 

SUMMARY

 

     Synopsis of Bill

 

House Bill 411 makes a technical amendment to Section 7-9-77.1 NMSA 1978, to change the word “osteopaths” to “osteopathic physicians.” Although this bill is titled “Osteopath Gross Receipts Deduction”, the main provision allows payments made by an “agent” to also be exempt from gross receipts tax. An osteopath gross receipts deduction currently exists within Section 7-9-77.1 NMSA 1978.

 

     Significant Issues

 

Section 7-9-77.1 NMSA 1978 provides a gross receipts tax exemption for payments from the United States government to physicians for medical services rendered. The new agent exemption is defined as a person who has entered into a contract with the federal Health and Human Services Department or an authorized representative of the federal government to offer a medicare+choice plan pursuant to 42 U.S.C. 1395w-27. Thus, payments from such an agent to a medical doctor or hospice would be exempt from gross receipts tax.

 

FISCAL IMPLICATIONS

 

HB 411 will reduce both general fund and local government revenue to some degree. However, the Taxation and Revenue Department has yet to provide an estimate of the total impact.

 

RLG/njw

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