HOUSE BILL 349

51st legislature - STATE OF NEW MEXICO - second session, 2014

INTRODUCED BY

Jim R. Trujillo

AN ACT

RELATING TO TAXATION; IMPOSING A HOSPITAL GROSS RECEIPTS TAX AND A HOSPITAL GOVERNMENTAL GROSS RECEIPTS TAX ON CERTAIN HOSPITALS FOR ONE YEAR; SUSPENDING CERTAIN EXEMPTIONS PURSUANT TO THE GROSS RECEIPTS AND COMPENSATING TAX ACT FOR CERTAIN HOSPITALS FOR ONE YEAR.

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] IMPOSITION AND RATE OF TAX--DENOMINATION AS "HOSPITAL GROSS RECEIPTS TAX" AND "HOSPITAL GOVERNMENTAL GROSS RECEIPTS TAX".--

          A. From July 1, 2014 and prior to July 1, 2015, for the privilege of engaging in business, an additional excise tax of seventy-five ten-thousandths percent of gross receipts is imposed on an investor-owned or -operated acute care general hospital licensed by the department of health but is not imposed on any hospital in a class A county that has a hospital that is operated and maintained pursuant to a lease or operating agreement with a state educational institution named in Article 12, Section 11 of the constitution of New Mexico. The tax imposed by this subsection shall be referred to as the "hospital gross receipts tax".

          B. From July 1, 2014 and prior to July 1, 2015, for the privilege of engaging in certain activities by governments, an additional excise tax of seventy-five ten-thousandths percent of gross receipts is imposed on every institution, instrumentality or political subdivision of the state that is an acute care general hospital licensed by the department of health but is not imposed on any hospital in a class A county that has a hospital that is operated and maintained pursuant to a lease or operating agreement with a state educational institution named in Article 12, Section 11 of the constitution of New Mexico. The tax imposed by this subsection shall be referred to as the "hospital governmental gross receipts tax"."

     SECTION 2. Section 7-9-13 NMSA 1978 (being Laws 1969, Chapter 144, Section 6, as amended) is amended to read:

     "7-9-13. EXEMPTION--GROSS RECEIPTS TAX--GOVERNMENTAL AGENCIES.--

          A. Except as otherwise provided in this section, exempted from the gross receipts tax are receipts of:

                (1) the United States or any agency, department or instrumentality thereof;

                (2) the state of New Mexico or any political subdivision thereof;

                (3) any Indian nation, tribe or pueblo from activities or transactions occurring on its sovereign territory; or

                (4) any foreign nation or agency, instrumentality or political subdivision thereof, but only when required by a treaty in force to which the United States is a party.

          B. Receipts from the sale of gas or electricity by a utility owned or operated by a county, municipality or other political subdivision of a state are not exempted from the gross receipts tax.

          C. Receipts from the operation of a cable television system owned or operated by a municipality are not exempted from the gross receipts tax.

          D. From July 1, 2014 and prior to July 1, 2015, receipts from a hospital are not exempt from the gross receipts tax.

          E. As used in this section, "hospital" means an acute care general hospital licensed by the department of health but does not include hospitals in a class A county that has a hospital that is operated and maintained pursuant to a lease or operating agreement with a state educational institution named in Article 12, Section 11 of the constitution of New Mexico."

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

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

          A. Except as otherwise provided in this section, 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 1954, as amended or renumbered.

          B. Exempted from the gross receipts tax are the 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, as amended or renumbered.

          C. 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, as amended or renumbered.

          D. From July 1, 2014 and prior to July 1, 2015, receipts from a hospital are not exempt from the gross receipts tax.

          E. As used in this section, "hospital" means an acute care general hospital licensed by the department of health but does not include hospitals in a class A county that has a hospital that is operated and maintained pursuant to a lease or operating agreement with a state educational institution named in Article 12, Section 11 of the constitution of New Mexico."

     SECTION 4. DELAYED REPEAL.--Section 1 of this act is repealed effective July 1, 2015.

     SECTION 5. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2014.

- 5 -