2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-96.2 - Credit; gross receipts tax; unpaid charges for services provided in a hospital.

A. A licensed medical doctor, licensed osteopathic physician or association of licensed medical doctors or osteopathic physicians may claim a credit against gross receipts taxes due in an amount equal to the value of unpaid qualified health care services.
B. As used in this section:
(1) "association of licensed medical doctors or osteopathic physicians" means a corporation, unincorporated business entity or other legal entity organized by, owned by or employing one or more licensed medical doctors or osteopathic physicians; provided that the entity is not:
(a) an organization 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 that section may be amended or renumbered; or
(b) a health maintenance organization, hospital, hospice, nursing home or an entity that is solely an outpatient facility or intermediate care facility licensed pursuant to the Public Health Act [Chapter 24, Article 1 NMSA 1978];
(2) "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
(3) "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 [health care authority 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 [Chapter 27, Article 5 NMSA 1978].
History:
Laws 2007, ch. 361, § 8; 2021, ch. 65, § 28.
ANNOTATIONS
Bracketed material.
— The bracketed material was inserted by the compiler and is not part of the law. Laws 2023, ch. 205, § 16 provided that references to the human services department shall be deemed to be references to the health care authority department.
The 2021 amendment,
effective July 1, 2021, provided that associations of licensed medical doctors or osteopathic physicians are eligible to claim certain gross receipts tax deductions, and defined "association of licensed medical doctors or osteopathic physicians", as used in this section; in Subsection A, after "licensed osteopathic physician", added "or association of licensed medical doctors or osteopathic physicians", and after "taxes due in", deleted "the following amounts", deleted former Paragraphs A(1) and A(2), and deleted former paragraph designation "(3)" and the language "on and after July 1, 2009, one hundred percent of" and added "an amount equal to"; and in Subsection B, added new Paragraph B(1) and redesignated former Paragraphs B(1) and B(2) as Paragraphs B(2) and B(3), respectively.