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	Marquardt		DATE TYPED	2-11-04		HB	452
SHORT TITLE		Health Care Services Tax Credit				SB
					ANALYST		Taylor

REVENUE

Estimated Revenue		Subsequent Years Impact	Recurring or Non-Rec	Fund Affected
FY04	FY05
(17,000.0)	(68,000.0)	Increasing	Recurring	General Fund

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Taxation and Revenue Department (TRD)

SUMMARY

HB 452 provides personal and corporate income tax credits equal to state and local gross receipts taxes paid for medical and health care services by physicians, or a pass through entity of which the physician is an owner. If the taxes are paid by the pass through entity, the credit is proportional to the taxpayer’s share of the taxpayer’s gross receipts payments. The credit is refundable.

Physicians are defined to include licensed physicians, dentists, optometrists and osteopathic physicians.

The bill’s provisions would become applicable on January 1, 2004.

FISCAL IMPLICATIONS

TRD reports that gross receipts taxes paid by qualifying physicians average about $68 million. The impact for FY04 is based on a quarter year.

ADMINISTRATIVE IMPLICATIONS

TRD reports that the administrative impacts are modest.

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