SENATE BILL 527

47th legislature - STATE OF NEW MEXICO - second session, 2006

INTRODUCED BY

John Arthur Smith

AN ACT

RELATING TO TAXATION; PROVIDING A PHASED-IN 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 Tax Administration Act is enacted to read:

     "[NEW MATERIAL] DISTRIBUTION ADJUSTMENT--TAX ADMINISTRATION SUSPENSE FUND--CREDIT FOR RECEIPTS OF HOSPITALS.--Distributions from the tax administration suspense fund of revenue attributable to the gross receipts tax shall be adjusted for the full cost of credits issued pursuant to the Gross Receipts and Compensating Tax Act for receipts of hospitals licensed by the department of health."

     Section 2. 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 gross receipts tax due for that reporting period as follows:

                (1) for a hospital located in a municipality:

                     (a) on or after July 1, 2007 but before July 1, 2008, in an amount equal to one and two hundred fifty-eight thousandths percent of the hospital's taxable gross receipts for that reporting period after all applicable deductions have been taken;

                     (b) on or after July 1, 2008 but before July 1, 2009, in an amount equal to two and five hundred sixteen thousandths percent of the hospital's taxable gross receipts for that reporting period after all applicable deductions have been taken; and

                     (c) on or after July 1, 2009, in an amount equal to three and seven hundred seventy-five thousandths percent of the hospital's taxable gross receipts for that reporting period after all applicable deductions have been taken; and

                (2) for a hospital located in the unincorporated area of a county:

                     (a) on or after July 1, 2007 but before July 1, 2008, in an amount equal to one and sixty-seven hundredths percent of the hospital's taxable gross receipts for that reporting period after all applicable deductions have been taken;

                     (b) on or after July 1, 2008 but before July 1, 2009, in an amount equal to three and thirty-four hundredths percent of the hospital's taxable gross receipts for that reporting period after all applicable deductions have been taken; and

                     (c) on or after July 1, 2009, in an amount equal to five percent of the hospital's taxable gross receipts for that reporting period after all applicable deductions have 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 3. APPLICABILITY.--The provisions of Section 2 of this act apply to reporting periods beginning on or after July 1, 2006.

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