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committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports

if they are used for other purposes.

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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

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