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	Larranaga		DATE TYPED	02-06-04		HB	385
SHORT TITLE		Certain Physician Services Gross Receipts				SB
					ANALYST		Taylor

REVENUE

Estimated Revenue		Subsequent Years Impact	Recurring or Non-Rec	Fund Affected
FY04	FY05	Subsequent Years Impact	Recurring or Non-Rec	Fund Affected
(2.5)	(26,500.0)	Increasing	Recurring	General Fund
(1.5)	(23,100.0)	Increasing	Recurring	Local Governments

(Parenthesis ( ) Indicate Revenue Decreases)

Relates to: HB 17, HB 154 and SB 179

SOURCES OF INFORMATION

LFC Files

Responses Received From

Taxation and Revenue Department (TRD)

SUMMARY

HB 385 provides a gross receipts tax deduction for receipts from the provision of services by a physician, osteopathic physician or podiatrist that are not otherwise deductible.

FISCAL IMPLICATIONS

TRD reports that this bill would exempt approximately $810 million in gross receipts in 2005.

Applying an average gross receipts tax rate of 6.1 percent implies a gross receipts revenue loss of $49.6 million, which is divided between state and local governments.

This estimate is based on various reports generated by the department, the Census of Healthcare Services in New Mexico and data from the Centers for Medicare and Medicaid Services and financial statements from selected managed care organization.

ADMINISTRATIVE IMPLICATIONS

TRD reports moderate administrative impacts that can be absorbed with existing resources.

BT/dm