Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports if they are used for other purposes.

Current FIRs (in HTML & Adobe PDF formats) are available on the NM Legislative Website (legis.state.nm.us). Adobe PDF versions include all attachments, whereas HTML versions may not. Previously issued FIRs and attachments may also be obtained from the LFC in Suite 101 of the State Capitol Building North.

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

SPONSOR	Heaton		DATE TYPED	1/28/2003		HB	80
SHORT TITLE		Gross Receipts in Health Provider Contracts				SB
					ANALYST		Taylor

REVENUE

Estimated Revenue		Subsequent Years Impact	Recurring or Non-Rec	Fund Affected
FY04	FY05
	NFI	NFI

(Parenthesis ( ) Indicate Revenue Decreases

SOURCES OF INFORMATION

LFC Files

Responses Received From

Taxation and Revenue Department

SUMMARY

This bill prohibits a provision in health plan contracts that do not allow health care providers to pass on the burden of the gross receipts tax.

FISCAL IMPLICATIONS

TRD reports that there is no fiscal impact associated with this bill: health care providers are liable for payment of the gross receipts tax on taxable receipts.

ADMINISTRATIVE IMPLICATIONS

TRD reports that this bill would have no administrative impact on them.

OTHER SUBSTANTIVE ISSUES

TRD reports the following issues:

1. Some of the impetus behind proposals to provide gross receipts tax deductions or exemptions to health care practitioners stems from the fact that some health plans are said to be refusing to pay the passed-on tax.

2. The department does not require the seller to separately state the gross receipts tax when invoicing for payment. Therefore, some healthcare providers may already be “embedding” the tax in their negotiated rates with health plans.

BT/njw