46th legislature - STATE OF NEW MEXICO - first session, 2003

RELATING TO TAXATION; PROVIDING A PHASED-IN GROSS RECEIPTS TAX DEDUCTION FOR CERTAIN RECEIPTS FROM SERVICES OF LICENSED HEALTH PRACTITIONERS.

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--CERTAIN RECEIPTS FROM SERVICES PROVIDED BY LICENSED HEALTH PRACTITIONERS.--

A. The following percentage of receipts from payments by managed health care providers for the commercial portion of contract services provided by a licensed health practitioner may be deducted from gross receipts:

(1) from July 1, 2003 through June 30, 2004, twenty percent of those receipts;

(2) from July 1, 2004 through June 30, 2005, forty percent of those receipts;

(3) from July 1, 2005 through June 30, 2006,

sixty percent of those receipts;

(4) from July 1, 2006 through June 30, 2007,

eighty percent of those receipts; and

(5) after June 30, 2007, all of those receipts.

B. As used in this section:

(1) "commercial portion of contract services" means services performed pursuant to a contract with a managed health care provider other than those provided for medicare patients pursuant to Title 18 of the federal Social Security Act or for medicaid patients pursuant to Title 19 of the federal Social Security Act;

(2) "licensed health practitioner" means:

(a) a chiropractic physician licensed pursuant to the provisions of the Chiropractic Physician Practice Act;

(b) a dentist or dental hygienist licensed pursuant to the provisions of the Dental Health Care Act;

(c) a physician or physician assistant licensed pursuant to the provisions of Chapter 61, Article 6 NMSA 1978;

(d) an osteopathic physician licensed pursuant to the provisions of Chapter 61, Article 10 NMSA 1978 or an osteopathic physician's assistant licensed pursuant to the provisions of the Osteopathic Physicians' Assistants Act; (e) a doctor of oriental medicine licensed pursuant to the provisions of the Acupuncture and Oriental Medicine Practice Act;

(f) a podiatrist licensed pursuant to the provisions of the Podiatry Act;

(g) a psychologist licensed pursuant to the provisions of the Professional Psychologist Act;

(h) a registered nurse or licensed practical nurse licensed pursuant to the provisions of the Nursing Practice Act;

(i) a registered lay midwife registered by the department of health;

(j) a physical therapist licensed pursuant to the provisions of the Physical Therapy Act; (k) an optometrist licensed pursuant to the provisions of the Optometry Act;

(l) a registered occupational therapist licensed pursuant to the provisions of the Occupational Therapy Act; and

(m) a respiratory care practitioner licensed pursuant to the provisions of the Respiratory Care Act; and

(3) "managed health care provider" means a person that provides for the delivery of comprehensive basic health care services and medically necessary services to individuals enrolled in a plan through its own employed health care providers or by contracting with selected or participating health care providers. A "managed health care provider" includes only those persons that provide comprehensive basic health care services to enrollees on a contract basis, including the following:

(a) health maintenance organizations;

(b) preferred provider organizations;

(c) individual practice associations;

(d) competitive medical plans;

(e) exclusive provider organizations;

(f) integrated delivery systems;

(g) independent physician-provider organizations;

(h) physician hospital-provider organizations; and

(i) managed care services organizations."

Section 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2003.