SENATE BILL 242

54th legislature - STATE OF NEW MEXICO - first session, 2019

INTRODUCED BY

Gerald Ortiz y Pino

AN ACT

RELATING TO TAXATION; PROVIDING A GROSS RECEIPTS TAX AND A GOVERNMENTAL GROSS RECEIPTS TAX DEDUCTION FOR MEDICAL CANNABIS.

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

     SECTION 1. 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 AND OXYGEN SERVICES--MEDICAL CANNABIS.--

          A. Receipts from the sale of prescription drugs [and oxygen and oxygen services provided by a licensed medicare durable medical equipment provider] may be deducted from gross receipts and governmental gross receipts.

          B. Receipts from the sale of oxygen and oxygen services provided by a licensed medicare durable medical equipment provider may be deducted from gross receipts and governmental gross receipts.

          C. Receipts from the sale of medical cannabis by a licensed producer to a qualified patient may be deducted from gross receipts and governmental gross receipts.

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

                (1) "licensed producer" means a licensed producer pursuant to the Lynn and Erin Compassionate Use Act;

                (2) "prescription drugs" means insulin and substances, not including medical cannabis, that are:

                     [(1)] (a) 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)] (b) prescribed for a specified person by a person authorized under state law to prescribe the substance; and

                     [(3)] (c) subject to the restrictions on sale contained in Subparagraph 1 of Subsection (b) of 21 USCA 353; and

                (3) "qualified patient" means a qualified patient pursuant to the Lynn and Erin Compassionate Use Act."

     SECTION 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2019.

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