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F I S C A L I M P A C T R E P O R T
SPONSOR Campos
DATE TYPED 3-2-2005 HB
SHORT TITLE Government Dietician Gross Receipts
SB 999
ANALYST Taylor
REVENUE
Estimated Revenue
Subsequent
Years Impact
Recurring
or Non-Rec
Fund
Affected
FY05
FY06
($16)
Similar Recurring State General Fund
($10)
Similar Recurring Local Governments
(Parenthesis ( ) Indicate Revenue Decreases)
SOURCES OF INFORMATION
LFC Files
Taxation and Revenue Department (TRD)
SUMMARY
Senate Bill 999 adds dieticians to the list of professional health care providers eligible for a gross
receipts tax deduction for services provided to medicare beneficiaries. The deduction is cur-
rently provided for services provided by medical doctors, osteopathic physicians and podiatrists.
The bill also provides a deduction for receipts from payments by the U.S. government for medi-
cal services provided by a clinical laboratory to medicare beneficiaries.
FISCAL IMPLICATIONS
TRD reports that the fiscal impact of the bill only applies to services provided by dieticians. The
provision related to receipts provided by a clinical laboratory addresses a technical issue, and
TRD is currently allowing this deduction. Their discussion of this is included in the Other Sub-
stantive Issues section of this report.
TRD estimates that the deduction provided to dieticians would reduce general fund revenues by
$16 thousand and local government revenues by $10 thousand. The department reports that the
estimate is based on receipts from receipts from dieticians were extracted from the department’s
“Analysis of Gross Receipts by North American Classification System (NAICS). Assuming an
pg_0002
Senate Bill 999 -- Page 2
average state-wide gross receipts rate of 6.6 percent, the implied tax base—the newly deductible
dieticians’ gross receipts—would be about $400 thousand.
ADMINISTRATIVE IMPLICATIONS
TRD reports that the administrative implications are minimal and could be absorbed with exist-
ing resources.
OTHER SUBSTANTIVE ISSUES
TRD provided this discussion of deduction provided for clinical laboratories.
Laws 2003, Chapter 350, Section 1 amended the deduction under Section 7-9-77.1
NMSA 1978 to include Medicare receipts of home health agencies and clinical laborato-
ries. However, because Laws 2003, Chapter 351, Section 1, which also amended Section
7-9-77.1, was signed last by Governor, it was codified, while Laws 2003, Chapter 350,
Section 1 (deduction for clinical labs and home agencies) appears in the annotations to
that section. The Tax Department interprets the annotations of the statute to be binding
as law until and unless they are omitted in a subsequent amendment of the statute. The
Department’s position is based on the argument that rules of statutory construction are
only aids when interpreting true legislative intent (Quintana v. New Mexico Dep’t of
Cors., 100 N.M. 224, P2d 1101 [1983]).
BT/yr