HB0612

HOUSE BILL 612

51st legislature - STATE OF NEW MEXICO - first session, 2013

INTRODUCED BY

Jim R. Trujillo

FOR THE REVENUE STABILIZATION AND TAX POLICY COMMITTEE

AN ACT

RELATING TO TAXATION; LOWERING THE TAX RATE IMPOSED ON GROSS RECEIPTS; CHANGING CERTAIN GROSS RECEIPTS EXEMPTIONS TO DEDUCTIONS; PHASING OUT CERTAIN GROSS RECEIPTS CREDITS AND DEDUCTIONS RELATED TO HEALTH CARE.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

SECTION 1. Section 7-1-6.4 NMSA 1978 (being Laws 1983, Chapter 211, Section 9, as amended) is amended to read:

"7-1-6.4. DISTRIBUTION--MUNICIPALITY FROM GROSS RECEIPTS TAX.--

A. Except as provided in Subsection [B] C of this section, a distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to each municipality in an amount, subject to any increase or decrease made pursuant to Section 7-1-6.15 NMSA 1978, equal to the product of the quotient [of one and two hundred twenty-five thousandths percent divided by the tax rate imposed by Section 7-9-4 NMSA 1978] provided for in Subsection B of this section multiplied by the net receipts for the month attributable to the gross receipts tax from business locations:

(1) within that municipality;

(2) on land owned by the state, commonly known as the "state fairgrounds", within the exterior boundaries of that municipality;

(3) outside the boundaries of any municipality on land owned by that municipality; and

(4) on an Indian reservation or pueblo grant in an area that is contiguous to that municipality and in which the municipality performs services pursuant to a contract between the municipality and the Indian tribe or Indian pueblo if:

(a) the contract describes an area in which the municipality is required to perform services and requires the municipality to perform services that are substantially the same as the services the municipality performs for itself; and

(b) the governing body of the municipality has submitted a copy of the contract to the secretary.

B. The quotient required in Subsection A of this section shall be:

(1) one and two hundred twenty-five thousandths percent divided by the tax rate imposed by Section 7-9-4 NMSA 1978 prior to July 1, 2015;

(2) one and one hundred ninety-five thousandths percent divided by the tax rate imposed by Section 7-9-4 NMSA 1978 from July 1, 2015 through June 30, 2016;

(3) one and one hundred sixty-five thousandths percent divided by the tax rate imposed by Section 7-9-4 NMSA 1978 from July 1, 2016 through June 30, 2017;

(4) one and one hundred thirty-five thousandths percent divided by the tax rate imposed by Section 7-9-4 NMSA 1978 from July 1, 2017 through June 30, 2018;

(5) one and one hundred five thousandths percent divided by the tax rate imposed by Section 7-9-4 NMSA 1978 from July 1, 2018 through June 30, 2019; and

(6) one and seventy-six thousandths percent divided by the tax rate imposed by Section 7-9-4 NMSA 1978 on or after July 1, 2019.

[B.] C. If the reduction made by Laws 1991, Chapter 9, Section 9 to the distribution under this section impairs the ability of a municipality to meet its principal or interest payment obligations for revenue bonds outstanding prior to July 1, 1991 that are secured by the pledge of all or part of the municipality's revenue from the distribution made under this section, then the amount distributed pursuant to this section to that municipality shall be increased by an amount sufficient to meet any required payment, provided that the distribution amount does not exceed the amount that would have been due that municipality under this section as it was in effect on June 30, 1992.

[C.] D. A distribution pursuant to this section may be adjusted for a distribution made to a tax increment development district with respect to a portion of a gross receipts tax increment dedicated by a municipality pursuant to the Tax Increment for Development Act."

SECTION 2. Section 7-9-4 NMSA 1978 (being Laws 1966, Chapter 47, Section 4, as amended) is amended to read:

"7-9-4. IMPOSITION AND RATE OF TAX--DENOMINATION AS "GROSS RECEIPTS TAX".--

A. For the privilege of engaging in business, an excise tax [equal to five and one-eighth percent of gross receipts] is imposed on the gross receipts of any person engaging in business in New Mexico. The rate of the excise tax imposed shall be equal to:

(1) five and one-eighth percent of gross receipts received prior to July 1, 2015;

(2) five percent of gross receipts received from July 1, 2015 through June 30, 2016;

(3) four and seven-eighths percent of gross receipts received from July 1, 2016 through June 30, 2017;

(4) four and three-fourths percent of gross receipts received from July 1, 2017 through June 30, 2018;

(5) four and five-eighths percent of gross receipts received from July 1, 2018 through June 30, 2019; and

(6) four and one-half percent of gross receipts received on or after July 1, 2019.

B. The tax imposed by this section shall be referred to as the "gross receipts tax"."

SECTION 3. Section 7-9-7 NMSA 1978 (being Laws 1966, Chapter 47, Section 7, as amended) is amended to read:

"7-9-7. IMPOSITION AND RATE OF TAX--DENOMINATION AS "COMPENSATING TAX".--

A. For the privilege of using tangible property in New Mexico, there is imposed on the person using the property an excise tax equal to: [five and one-eighth percent of the value of tangible property that was:

(1) manufactured by the person using the property in the state;

(2) acquired inside or outside of this state as the result of a transaction with a person located outside this state that would have been subject to the gross receipts tax had the tangible personal property been acquired from a person with nexus with New Mexico; or

(3) acquired as the result of a transaction that was not initially subject to the compensating tax imposed by Paragraph (2) of this subsection or the gross receipts tax but which transaction, because of the buyer's subsequent use of the property, should have been subject to the compensating tax imposed by Paragraph (2) of this subsection or the gross receipts tax]

(1) five and one-eighth percent of the value of tangible property used prior to July 1, 2015;

(2) five percent of the value of tangible property used from July 1, 2015 through June 30, 2016;

(3) four and seven-eighths percent of the value of tangible property used from July 1, 2016 through June 30, 2017;

(4) four and three-fourths percent of the value of tangible property used from July 1, 2017 through June 30, 2018;

(5) four and five-eighths percent of the value of tangible property used from July 1, 2018 through June 30, 2019; and

(6) four and one-half percent of the value of tangible property used on or after July 1, 2020.

B. For the purpose of Subsection A of this section, value of tangible property shall be the adjusted basis of the property for federal income tax purposes determined as of the time of acquisition or introduction into this state or of conversion to use, whichever is later. If no adjusted basis for federal income tax purposes is established for the property, a reasonable value of the property shall be used.

C. For the privilege of using services rendered in New Mexico, there is imposed on the person using such services an excise tax [equal to five percent of the value of the services at the time they were rendered]. The services, to be taxable under this subsection, must have been rendered as the result of a transaction that was not initially subject to the gross receipts tax but which transaction, because of the buyer's subsequent use of the services, should have been subject to the gross receipts tax. The rate of the excise tax imposed by this subsection shall be equal to:

(1) five and one-eighth percent of the value of the services, valued at the time rendered, for services rendered prior to July 1, 2015;

(2) five percent of the value of the services, valued at the time rendered, for services rendered from July 1, 2015 through June 30, 2016;

(3) four and seven-eighths percent of the value of the services, valued at the time rendered, for services rendered from July 1, 2016 through June 30, 2017;

(4) four and three-fourths percent of the value of the services, valued at the time rendered, for services rendered from July 1, 2017 through June 30, 2018;

(5) four and five-eighths percent of the value of the services, valued at the time rendered, for services rendered from July 1, 2018 through June 30, 2019; and

(6) four and one-half percent of the value of the services, valued at the time rendered, for services rendered on or after July 1, 2020.

D. The tax imposed by this section shall be referred to as the "compensating tax".

E. As used in this section, "tangible property" means tangible property that was:

(1) manufactured by the person using the property in the state;

(2) acquired inside or outside of this state as the result of a transaction with a person located outside of this state that would have been subject to the gross receipts tax had the tangible personal property been acquired from a person with nexus in New Mexico; or

SECTION 4. Section 7-9-16 NMSA 1978 (being Laws 1969, Chapter 144, Section 9, as amended) is amended to read:

"7-9-16. [EXEMPTION] DEDUCTION--GROSS RECEIPTS TAX--CERTAIN NONPROFIT FACILITIES.--[Exempted from the gross receipts tax are the] Receipts of nonprofit entities from the operation of facilities designed and used for providing accommodations for retired elderly persons may only be deducted from gross receipts in the percentages and during the dates that follow:

A. one hundred percent of receipts received prior to July 1, 2015;

B. eighty percent of receipts received from July 1, 2015 through June 30, 2016;

C. sixty percent of receipts received from July 1, 2016 through June 30, 2017;

D. forty percent of receipts received from July 1, 2017 through June 30, 2018; and

E. twenty percent of receipts received from July 1, 2018 through June 30, 2019."

SECTION 5. Section 7-9-29 NMSA 1978 (being Laws 1970, Chapter 12, Section 3, as amended) is amended to read:

"7-9-29. [EXEMPTION] DEDUCTION--GROSS RECEIPTS TAX--CERTAIN ORGANIZATIONS.--

A. [Exempted from the gross receipts tax are the] Except as otherwise provided in Subsection B of this section, receipts of organizations that demonstrate to the department that they have been granted exemption from the federal income tax by the United States commissioner of internal revenue as organizations described in Section 501(c)(3) of the United States Internal Revenue Code of [1954] 1986, as amended or renumbered may be deducted from gross receipts.

B. [Exempted from the gross receipts tax are the] Receipts of organizations that demonstrate to the department that they have been granted exemption from the federal income tax by the United States commissioner of internal revenue as organizations described in Section 501(c)(3) of the United States Internal Revenue Code of 1986, as amended or renumbered, from the operation of health care facilities or providing health care services may only be deducted from gross receipts in the percentages and during the dates that follow:

(1) one hundred percent of receipts received prior to July 1, 2015;

(2) eighty percent of receipts received from July 1, 2015 through June 30, 2016;

(3) sixty percent of receipts received from July 1, 2016 through June 30, 2017;

(4) forty percent of receipts received from July 1, 2017 through June 30, 2018; and

(5) twenty percent of receipts received from July 1, 2018 through June 30, 2019.

C. Receipts from carrying on chamber of commerce, visitor bureau and convention bureau functions of organizations that demonstrate to the department that they have been granted exemption from the federal income tax by the United States commissioner of internal revenue as organizations described in Section 501(c)(6) of the United States Internal Revenue Code of [1954] 1986, as amended or renumbered, may be deducted from gross receipts.

[C.] D. This section does not apply to receipts derived from an unrelated trade or business as defined in Section 513 of the United States Internal Revenue Code of [1954] 1986, as amended or renumbered."

SECTION 6. Section 7-9-73 NMSA 1978 (being Laws 1970, Chapter 78, Section 2, as amended) is amended to read:

"7-9-73. DEDUCTION--GROSS RECEIPTS TAX--GOVERNMENTAL GROSS RECEIPTS--SALE OF PROSTHETIC DEVICES.--

A. Receipts from selling prosthetic devices may be deducted as provided for in Subsection B of this section from gross receipts or from governmental gross receipts if the sale is made to a person who is licensed to practice medicine, osteopathic medicine, dentistry, podiatry, optometry, chiropractic or professional nursing and who delivers a nontaxable transaction certificate to the seller. The buyer delivering the nontaxable transaction certificate must deliver the prosthetic device incidental to the performance of a service and must include the value of the prosthetic device in [his] the charge for the service.

B. The receipts described in Subsection A of this section may only be deducted from gross receipts in the percentages and during the dates that follow:

(1) one hundred percent of receipts received prior to July 1, 2015;

(2) eighty percent of receipts received from July 1, 2015 through June 30, 2016;

(3) sixty percent of receipts received from July 1, 2016 through June 30, 2017;

(4) forty percent of receipts received from July 1, 2017 through June 30, 2018; and

(5) twenty percent of receipts received from July 1, 2018 through June 30, 2019."

SECTION 7. Section 7-9-73.1 NMSA 1978 (being Laws 1991, Chapter 8, Section 3, as amended) is amended to read:

"7-9-73.1. DEDUCTION--GROSS RECEIPTS--HOSPITALS.--[Fifty percent of the]

A. Receipts of hospitals licensed by the department of health may be deducted as provided for in Subsection B of this section from gross receipts; provided this deduction may be applied only to the taxable gross receipts remaining after all other appropriate deductions have been taken.

B. The receipts described in Subsection A of this section may only be deducted from gross receipts in the percentages and during the dates that follow:

(1) one hundred percent of receipts received prior to July 1, 2015;

(2) eighty percent of receipts received from July 1, 2015 through June 30, 2016;

(3) sixty percent of receipts received from July 1, 2016 through June 30, 2017;

(4) forty percent of receipts received from July 1, 2017 through June 30, 2018; and

(5) twenty percent of receipts received from July 1, 2018 through June 30, 2019."

SECTION 8. Section 7-9-73.2 NMSA 1978 (being Laws 1998, Chapter 95, Section 2 and Laws 1998, Chapter 99, Section 4, as amended) is amended to read:

"7-9-73.2. DEDUCTION--GROSS RECEIPTS TAX AND GOVERNMENTAL GROSS RECEIPTS TAX--PRESCRIPTION DRUGS--OXYGEN.--

A. Receipts from the sale of prescription drugs and oxygen and oxygen services provided by a licensed medicare durable medical equipment provider may only be deducted from gross receipts and governmental gross receipts in the percentages and during the dates that follow:

(1) one hundred percent of receipts received prior to July 1, 2015;

(2) eighty percent of receipts received from July 1, 2015 through June 30, 2016;

(3) sixty percent of receipts received from July 1, 2016 through June 30, 2017;

(4) forty percent of receipts received from July 1, 2017 through June 30, 2018; and

(5) twenty percent of receipts received from July 1, 2018 through June 30, 2019.

B. For the purposes of this section, "prescription drugs" means insulin and substances that are:

(1) dispensed by or under the supervision of a licensed pharmacist or by a physician or other person authorized under state law to do so;

(2) prescribed for a specified person by a person authorized under state law to prescribe the substance; and

(3) subject to the restrictions on sale contained in Subparagraph 1 of Subsection (b) of 21 USCA 353."

SECTION 9. Section 7-9-77.1 NMSA 1978 (being Laws 1998, Chapter 96, Section 1, as amended) is amended to read:

"7-9-77.1. DEDUCTION--GROSS RECEIPTS TAX--CERTAIN MEDICAL AND HEALTH CARE SERVICES.--

A. Receipts from payments by the United States government or any agency thereof for provision of medical and other health services by medical doctors, osteopathic physicians, doctors of oriental medicine, athletic trainers, chiropractic physicians, counselor and therapist practitioners, dentists, massage therapists, naprapaths, nurses, nutritionists, dietitians, occupational therapists, optometrists, pharmacists, physical therapists, psychologists, radiologic technologists, respiratory care practitioners, audiologists, speech-language pathologists, social workers and podiatrists or of medical, other health and palliative services by hospices or nursing homes to medicare beneficiaries pursuant to the provisions of Title 18 of the federal Social Security Act may be deducted as provided for in Subsection F of this section from gross receipts.

B. Receipts from payments by a third-party administrator of the federal TRICARE program for provision of medical and other health services by medical doctors and osteopathic physicians to covered beneficiaries may be deducted as provided for in Subsection F of this section from gross receipts.

C. Receipts from payments by or on behalf of the Indian health service of the United States department of health and human services for provision of medical and other health services by medical doctors and osteopathic physicians to covered beneficiaries may be deducted as provided for in Subsection F of this section from gross receipts.

D. Receipts from payments by the United States government or any agency thereof for medical services provided by a clinical laboratory to medicare beneficiaries pursuant to the provisions of Title 18 of the federal Social Security Act may be deducted as provided for in Subsection F of this section from gross receipts.

E. Receipts from payments by the United States government or any agency thereof for medical, other health and palliative services provided by a home health agency to medicare beneficiaries pursuant to the provisions of Title 18 of the federal Social Security Act may be deducted as provided for in Subsection F of this section from gross receipts.

F. The receipts described in this section may only be deducted from gross receipts in the percentages and during the dates that follow:

(1) one hundred percent of receipts received prior to July 1, 2015;

(2) eighty percent of receipts received from July 1, 2015 to June 30, 2016;

(3) sixty percent of receipts received from July 1, 2016 through June 30, 2017;

(4) forty percent of receipts received from July 1, 2017 through June 30, 2018; and

(5) twenty percent of receipts received from July 1, 2018 through June 30, 2019.

[F.] G. For the purposes of this section:

(1) "athletic trainer" means a person licensed as an athletic trainer pursuant to the provisions of Chapter 61, Article 14D NMSA 1978;

(2) "chiropractic physician" means a person who practices chiropractic as defined in the Chiropractic Physician Practice Act;

(3) "clinical laboratory" means a laboratory accredited pursuant to 42 USCA 263a;

(4) "counselor and therapist practitioner" means a person licensed to practice as a counselor or therapist pursuant to the provisions of Chapter 61, Article 9A NMSA 1978;

(5) "dentist" means a person licensed to practice as a dentist pursuant to the provisions of Chapter 61, Article 5A NMSA 1978;

(6) "doctor of oriental medicine" means a person licensed as a physician to practice acupuncture or oriental medicine pursuant to the provisions of Chapter 61, Article 14A NMSA 1978;

(7) "home health agency" means a for-profit entity that is licensed by the department of health and certified by the federal centers for medicare and medicaid services as a home health agency and certified to provide medicare services;

(8) "hospice" means a for-profit entity licensed by the department of health as a hospice and certified to provide medicare services;

(9) "massage therapist" means a person licensed to practice massage therapy pursuant to the provisions of Chapter 61, Article 12C NMSA 1978;

(10) "medical doctor" means a person licensed as a physician to practice medicine pursuant to the provisions of the Medical Practice Act;

(11) "naprapath" means a person licensed as a naprapath pursuant to the provisions of Chapter 61, Article [12E] 12F NMSA 1978;

(12) "nurse" means a person licensed as a registered nurse pursuant to the provisions of Chapter 61, Article 3 NMSA 1978;

(13) "nursing home" means a for-profit entity licensed by the department of health as a nursing home and certified to provide medicare services;

(14) "nutritionist" or "dietitian" means a person licensed as a nutritionist or dietitian pursuant to the provisions of Chapter 61, Article 7A NMSA 1978;

(15) "occupational therapist" means a person licensed as an occupational therapist pursuant to the provisions of Chapter 61, Article 12A NMSA 1978;

(16) "osteopathic physician" means a person licensed as an osteopathic physician pursuant to the provisions of Chapter 61, Article 10 NMSA 1978;

(17) "optometrist" means a person licensed to practice optometry pursuant to the provisions of Chapter 61, Article 2 NMSA 1978;

(18) "pharmacist" means a person licensed as a pharmacist pursuant to the provisions of Chapter 61, Article 11 NMSA 1978;

(19) "physical therapist" means a person licensed as a physical therapist pursuant to the provisions of Chapter 61, Article 12D NMSA 1978;

(20) "podiatrist" means a person licensed as a podiatrist pursuant to the provisions of the Podiatry Act;

(21) "psychologist" means a person licensed as a psychologist pursuant to the provisions of Chapter 61, Article 9 NMSA 1978;

(22) "radiologic technologist" means a person licensed as a radiologic technologist pursuant to the provisions of Chapter 61, Article 14E NMSA 1978;

(23) "respiratory care practitioner" means a person licensed as a respiratory care practitioner pursuant to the provisions of Chapter 61, Article 12B NMSA 1978;

(24) "social worker" means a person licensed as an independent social worker pursuant to the provisions of Chapter 61, Article 31 NMSA 1978;

(25) "speech-language pathologist" means a person licensed as a speech-language pathologist pursuant to the provisions of Chapter 61, Article 14B NMSA 1978; and

(26) "TRICARE program" means the program defined in 10 U.S.C. 1072(7)."

SECTION 10. Section 7-9-93 NMSA 1978 (being Laws 2004, Chapter 116, Section 6, as amended) is amended to read:

"7-9-93. DEDUCTION--GROSS RECEIPTS--CERTAIN RECEIPTS FOR SERVICES PROVIDED BY HEALTH CARE PRACTITIONER.--

A. Receipts from payments by a managed health care provider or health care insurer for commercial contract services or medicare part C services provided by a health care practitioner that are not otherwise deductible pursuant to another provision of the Gross Receipts and Compensating Tax Act may be deducted as provided for in Subsection B of this section from gross receipts, provided that the services are within the scope of practice of the person providing the service. Receipts from fee-for-service payments by a health care insurer may not be deducted from gross receipts. The deduction provided by this section shall be separately stated by the taxpayer.

B. The receipts described in Subsection A of this section may only be deducted from gross receipts in the percentages and during the dates that follow:

(1) one hundred percent of receipts received prior to July 1, 2015;

(2) eighty percent of receipts received from July 1, 2015 through June 30, 2016;

(3) sixty percent of receipts received from July 1, 2016 through June 30, 2017;

(4) forty percent of receipts received from July 1, 2017 through June 30, 2018; and

(5) twenty percent of receipts received from July 1, 2018 through June 30, 2019.

[B.] C. For the purposes of this section:

(1) "commercial contract services" means health care services performed by a health care practitioner pursuant to a contract with a managed health care provider or health care insurer other than those health care services provided for medicare patients pursuant to Title 18 of the federal Social Security Act or for medicaid patients pursuant to Title 19 or Title 21 of the federal Social Security Act;

(2) "health care insurer" means a person that:

(a) has a valid certificate of authority in good standing pursuant to the New Mexico Insurance Code to act as an insurer, health maintenance organization or nonprofit health care plan or prepaid dental plan; and

(b) contracts to reimburse licensed health care practitioners for providing basic health services to enrollees at negotiated fee rates;

(3) "health care practitioner" means:

(a) a chiropractic physician licensed pursuant to the provisions of the Chiropractic Physician Practice Act;

(b) a dentist or dental hygienist licensed pursuant to the Dental Health Care Act;

(c) a doctor of oriental medicine licensed pursuant to the provisions of the Acupuncture and Oriental Medicine Practice Act;

(d) an optometrist licensed pursuant to the provisions of the Optometry Act;

(e) an osteopathic physician licensed pursuant to the provisions of Chapter 61, Article 10 NMSA 1978 or an osteopathic physician's assistant licensed pursuant to the provisions of the Osteopathic Physicians' Assistants Act;

(f) a physical therapist licensed pursuant to the provisions of the Physical Therapy Act;

(g) a physician or physician assistant licensed pursuant to the provisions of Chapter 61, Article 6 NMSA 1978;

(h) a podiatrist licensed pursuant to the provisions of the Podiatry Act;

(i) a psychologist licensed pursuant to the provisions of the Professional Psychologist Act;

(j) a registered lay midwife registered by the department of health;

(k) a registered nurse or licensed practical nurse licensed pursuant to the provisions of the Nursing Practice Act;

(l) a registered occupational therapist licensed pursuant to the provisions of the Occupational Therapy Act;

(m) a respiratory care practitioner licensed pursuant to the provisions of the Respiratory Care Act;

(n) a speech-language pathologist or audiologist licensed pursuant to the Speech-Language Pathology, Audiology and Hearing Aid Dispensing Practices Act;

(o) a professional clinical mental health counselor, marriage and family therapist or professional art therapist licensed pursuant to the provisions of the Counseling and Therapy Practice Act who has obtained a master's degree or a doctorate;

(p) an independent social worker licensed pursuant to the provisions of the Social Work Practice Act; and

(q) a clinical laboratory that is accredited pursuant to 42 U.S.C. Section 263a but that is not a laboratory in a physician's office or in a hospital defined pursuant to 42 U.S.C. Section 1395x;

(4) "managed health care provider" means a person that provides for the delivery of comprehensive basic health care services and medically necessary services to individuals enrolled in a plan through its own employed health care providers or by contracting with selected or participating health care providers. "Managed health care provider" includes only those persons that provide comprehensive basic health care services to enrollees on a contract basis, including the following:

(a) health maintenance organizations;

(b) preferred provider organizations;

(d) competitive medical plans;

(e) exclusive provider organizations;

(f) integrated delivery systems;

(g) independent physician-provider organizations;

(h) physician hospital-provider organizations; and

(i) managed care services organizations; and

(5) "medicare part C services" means services performed pursuant to a contract with a managed health care provider for medicare patients pursuant to Title 18 of the federal Social Security Act."

SECTION 11. Section 7-9-96.1 NMSA 1978 (being Laws 2007, Chapter 361, Section 7) is amended to read:

"7-9-96.1. 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 seven hundred fifty-five 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 one and fifty-one hundredths percent of the hospital's taxable gross receipts for that reporting period after all applicable deductions have been taken;

(c) on or after July 1, 2009 but before July 1, 2010, in an amount equal to two and two hundred sixty-five thousandths percent of the hospital's taxable gross receipts for that reporting period after all applicable deductions have been taken;

(d) on or after July 1, 2010 but before July 1, 2011, in an amount equal to three and two hundredths percent of the hospital's taxable gross receipts for that reporting period after all applicable deductions have been taken; [and]

(e) on or after July 1, 2011, but before July 1, 2015 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;

(f) on or after July 1, 2015 but before July 1, 2016, in an amount equal to three and two hundredths percent of the hospital's taxable gross receipts for that reporting period after all applicable deductions have been taken;

(g) on or after July 1, 2016 but before July 1, 2017, in an amount equal to two and two hundred sixty-five thousandths percent of the hospital's taxable gross receipts for that reporting period after all applicable deductions have been taken;

(h) on or after July 1, 2017 but before July 1, 2018, in an amount equal to one and fifty-one hundredths percent of the hospital's taxable gross receipts for that reporting period after all applicable deductions have been taken; and

(i) on or after July 1, 2018 but before July 1, 2019, in an amount equal to seven hundred fifty-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 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 percent of the hospital's taxable gross receipts for that reporting period after all applicable deductions have been taken;

(c) on or after July 1, 2009 but before July 1, 2010, in an amount equal to three percent of the hospital's taxable gross receipts for that reporting period after all applicable deductions have been taken;

(d) on or after July 1, 2010 but before July 1, 2011, in an amount equal to four percent of the hospital's taxable gross receipts for that reporting period after all applicable deductions have been taken; [and]

(e) on or after July 1, 2011 but before July 1, 2015, 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; (f) on or after July 1, 2015 but before July 1, 2016, in an amount equal to four percent of the hospital's taxable gross receipts for that reporting period after all applicable deductions have been taken;

(g) on or after July 1, 2016 but before July 1, 2017, in an amount equal to three percent of the hospital's taxable gross receipts for that reporting period after all applicable deductions have been taken;

(h) on or after July 1, 2017 but before July 1, 2018, in an amount equal to two percent of the hospital's taxable gross receipts for that reporting period after all applicable deductions have been taken; and

(i) on or after July 1, 2018 but before July 1, 2019, in an amount equal to one percent of the hospital's taxable gross receipts for that reporting period after all applicable deductions have been taken.

B. A hospital shall not claim the credit provided for in this section on or after July 1, 2019.

[B.] C. For the purposes of this section, "hospital" means a facility providing emergency or urgent care, inpatient 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 12. Section 7-9-96.2 NMSA 1978 (being Laws 2007, Chapter 361, Section 8) is amended to read:

"7-9-96.2. CREDIT--GROSS RECEIPTS TAX--UNPAID CHARGES FOR SERVICES PROVIDED IN A HOSPITAL.--

A. A licensed medical doctor or licensed osteopathic physician may claim a credit against gross receipts taxes due in the following amounts:

(1) from July 1, 2007 through June 30, 2008, thirty-three percent of the value of unpaid qualified health care services;

(2) from July 1, 2008 through June 30, 2009, sixty-seven percent of the value of unpaid qualified health care services; [and]

(3) [on and after] from July 1, 2009 through June 30, 2015, one hundred percent of the value of unpaid qualified health care services;

(4) from July 1, 2015 through June 30, 2016, eighty percent of the value of unpaid qualified health care services;

(5) from July 1, 2016 through June 30, 2017, sixty percent of the value of unpaid qualified health care services;

(6) from July 1, 2017 through June 30, 2018, forty percent of the value of unpaid qualified health care services; and

(7) from July 1, 2018 through June 30, 2019, twenty percent of the value of unpaid qualified health care services.

B. A taxpayer shall not claim the credit provided for in this section on or after July 1, 2019.

[B.] C. As used in this section:

(1) "qualified health care services" means medical care services provided by a licensed medical doctor or licensed osteopathic physician while on call to a hospital; and

(2) "value of unpaid qualified health care services" means the amount that is charged for qualified health care services, not to exceed one hundred thirty percent of the reimbursement rate for the services under the medicaid program administered by the human services department, that remains unpaid one year after the date of billing and that the licensed medical doctor or licensed osteopathic physician has reason to believe will not be paid because:

(a) at the time the services were provided, the person receiving the services had no health insurance or had health insurance that did not cover the services provided;

(b) at the time the services were provided, the person receiving the services was not eligible for medicaid; and

(c) the charges are not reimbursable under a program established pursuant to the Indigent Hospital and County Health Care Act."

SECTION 13. Section 7-9-99 NMSA 1978 (being Laws 2006, Chapter 35, Section 1) is amended to read:

"7-9-99. DEDUCTION--GROSS RECEIPTS TAX--SALE OF ENGINEERING, ARCHITECTURAL AND NEW FACILITY CONSTRUCTION SERVICES USED IN CONSTRUCTION OF CERTAIN PUBLIC HEALTH CARE FACILITIES.--

A. Receipts from selling an engineering, architectural or construction service used in the new facility construction of a sole community provider hospital that is located in a federally designated health professional shortage area may be deducted as provided for in Subsection B of this section from gross receipts if the sale of the engineering, architectural or construction service is made to a foundation or a nonprofit organization that:

[A.] (1) has entered into a written agreement with a county to pay at least ninety-five percent of the costs of new facility construction of that sole community provider hospital; and

[B.] (2) delivers to the seller of the engineering, architectural or construction service either an appropriate nontaxable transaction certificate or other evidence acceptable to the secretary of a written agreement made in accordance with [Subsection A of this section] Paragraph (1) of the subsection.

B. The receipts described in Subsection A of this section may only be deducted from gross receipts in the percentages and during the dates that follow:

(1) one hundred percent of receipts received prior to July 1, 2015;

(2) eighty percent of receipts received from July 1, 2015 through June 30, 2016;

(3) sixty percent of receipts received from July 1, 2016 through June 30, 2017;

(4) forty percent of receipts received from July 1, 2017 through June 30, 2018; and

(5) twenty percent of receipts received from July 1, 2018 through June 30, 2019."

SECTION 14. Section 7-9-100 NMSA 1978 (being Laws 2006, Chapter 35, Section 2) is amended to read:

"7-9-100. DEDUCTION--GROSS RECEIPTS TAX--SALE OF CONSTRUCTION EQUIPMENT AND CONSTRUCTION MATERIALS USED IN NEW FACILITY CONSTRUCTION OF A SOLE COMMUNITY PROVIDER HOSPITAL THAT IS LOCATED IN A FEDERALLY DESIGNATED HEALTH PROFESSIONAL SHORTAGE AREA.--

A. Receipts from selling construction equipment or construction materials used in the new facility construction of a sole community provider hospital that is located in a federally designated health professional shortage area may be deducted as provided for in Subsection B of this section from gross receipts if the sale of the construction equipment or construction materials is made to a foundation or a nonprofit organization that:

[A.] (1) has entered into a written agreement with a county to pay at least ninety-five percent of the costs of new facility construction of that sole community provider hospital; and

[B.] (2) delivers to the seller either an appropriate nontaxable transaction certificate or other evidence acceptable to the secretary of a written agreement made in accordance with [Subsection A of this section] Paragraph (1) of this subsection.

B. The receipts described in Subsection A of this section may only be deducted from gross receipts in the percentages and during the dates that follow:

(1) one hundred percent of receipts received prior to July 1, 2015;

(2) eighty percent of receipts received from July 1, 2015 through June 30, 2016;

(3) sixty percent of receipts received from July 1, 2016 through June 30, 2017;

(4) forty percent of receipts received from July 1, 2017 through June 30, 2018; and

(5) twenty percent of receipts received from July 1, 2018 through June 30, 2019."

SECTION 15. APPLICABILITY.--The provisions of this act apply to gross receipts received on or after July 1, 2013.

SECTION 16. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2013.

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