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

Jennings

DATE TYPED

1/29/04

HB

 

 

SHORT TITLE

Medical Services Gross Receipts

SB

180

 

 

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

 

Response Received From

Taxation and Revenue Department (TRD)

 

SUMMARY

Synopsis of Bill

 

Senate Bill 180 reconciles amendments to statute.  It adds a provision allowing a gross receipts tax deduction for receipts from payments by the U.S. government for medical services provided by a clinical laboratory to medicare beneficiaries.  The deduction is phased over three years: FY05, FY06 and FY07.

 

Significant Issues

 

TRD reports that this bill reconciles amendments to the same sections of statute passed during the 2003 regular session, thus aligning statute with legislative intent.

 

FISCAL IMPLICATIONS

 

TRD reports that there is no fiscal impact associated with the bill because they are currently honoring the deductions passed into law last year.

 

 

 

ADMINISTRATIVE IMPLICATIONS

 

TRD reports that the bill imposes no administrative impact on the department.

 

 

TECHNICAL ISSUES

 

TRD submitted the following technical issue:

 

Laws 2003, Chapter 351 phases-in GRT deductions for clinical labs and home health agencies over a three-year period beginning July 1, 2003.   This bill specifies July 1, 2004 as the initial phase-in period. Since the 2003 bill was passed and signed into law with a July 1, 2003 initial period, and the department is currently honoring the law as it passed last year, the provisions of this bill should be amended to reflect the original July 1, 2003 date.

 

BT/lg