RELATING TO TAXATION; PROVIDING A GROSS RECEIPTS TAX DEDUCTION FOR RECEIPTS FROM THE PROVISION OF CERTAIN MEDICAL AND HEALTH SERVICES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: Section 1. A new Section 7-9-77.1 NMSA 1978 is enacted to read:

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

A. Thirty-three and one-third percent of receipts, on or after July 1, 1998 and before July 1, 1999, from payments by the United States government or any agency thereof for provision of medical and other health services by medical doctors and osteopaths to medicare beneficiaries pursuant to the provisions of Title XVIII of the federal Social Security Act may be deducted from gross receipts.

B. Sixty-six and two-thirds percent of receipts, on or after July 1, 1999 and before July 1, 2000, from payments by the United States government or any agency thereof for provision of medical and other health services by medical doctors and osteopaths to medicare beneficiaries pursuant to the provisions of Title XVIII of the federal Social Security Act may be deducted from gross receipts.

C. Receipts, on or after July 1, 2000, from payments by the United States government or any agency thereof for provision of medical and other health services by medical doctors and osteopaths to medicare beneficiaries pursuant to the provisions of Title XVIII of the federal Social Security Act may be deducted from gross receipts.

D. For the purposes of this section, "medical doctors and osteopaths" means persons licensed to practice under Section 61-6-11 or 61-10-11 NMSA 1978."

Section 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 1998.