HOUSE BUSINESS AND INDUSTRY COMMITTEE SUBSTITUTE FOR

HOUSE BILL 904

47th legislature - STATE OF NEW MEXICO - first session, 2005

AN ACT

RELATING TO TAXATION; PROVIDING A CREDIT FOR THE STATE PORTION OF GROSS RECEIPTS TAX FOR HOSPITALS LICENSED BY THE DEPARTMENT OF HEALTH.

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] CREDIT--GROSS RECEIPTS TAX--RECEIPTS OF CERTAIN HOSPITALS.--

          A. A hospital licensed by the department of health may claim a credit for each reporting period against the state portion of gross receipts tax due for that reporting period as follows:

                (1) for a hospital located in a municipality and for a reporting period occurring:

                     (a) on or after July 1, 2005 and during the 2005 calendar year, in an amount equal to one and two hundred fifty-eight thousandths percent of the hospital's taxable gross receipts from providing commercial contract or medicare part A, part B or part C services for that reporting period after the deduction pursuant to Section 7-9-73.1 NMSA 1978 has been taken;  

                     (b) during the 2006 calendar year, in an amount equal to two and five hundred sixteen thousandths percent of the hospital's taxable gross receipts from providing commercial contract or medicare part A, part B or part C services for that reporting period after the deduction pursuant to Section 7-9-73.1 NMSA 1978 has been taken; and

                     (c) during the 2007 calendar year or during a subsequent calendar year, in an amount equal to three and seven hundred seventy-five thousandths percent of the hospital's taxable gross receipts from providing commercial contract or medicare part A, part B or part C services for that reporting period after the deduction pursuant to Section 7-9-73.1 NMSA 1978 has been taken; and

                (2) for a hospital located in the unincorporated area of a county and for a reporting period occurring:

                     (a) on or after July 1, 2005 and during the 2005 calendar year, in an amount equal to one and sixty-seven hundredths percent of the hospital's taxable gross receipts from providing commercial contract or medicare part A, part B or part C services for that reporting period after the deduction pursuant to Section 7-9-73.1 NMSA 1978 has been taken;

                     (b) during the 2006 calendar year, in an amount equal to three and thirty-four hundredths percent of the hospital's taxable gross receipts from providing commercial contract or medicare part A, part B or part C services for that reporting period after the deduction pursuant to Section 7-9-73.1 NMSA 1978 has been taken; and

                     (c) during the 2007 calendar year or during a subsequent calendar year, in an amount equal to five percent of the hospital's taxable gross receipts from providing commercial contract or medicare part A, part B or part C services for that reporting period after the deduction pursuant to Section 7-9-73.1 NMSA 1978 has been taken.

          B. For the purposes of this section, "hospital" means a facility providing emergency or urgent care, in-patient medical care and nursing care for acute illness, injury, surgery or obstetrics and includes a facility licensed by the department of health as a critical access hospital, general hospital, long-term acute care hospital, psychiatric hospital, rehabilitation hospital, limited services hospital and special hospital."

     Section 2. APPLICABILITY.--The provisions of this act apply to reporting periods beginning on or after July 1, 2005.

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