2023 New Mexico Statutes › Chapter 7 - Taxation › Article 9 - Gross Receipts and Compensating Tax › Section 7-9-73.3 - Deduction; gross receipts tax and governmental gross receipts tax; durable medical equipment; medical supplies.

A. Prior to July 1, 2030, receipts from the sale or rental of durable medical equipment and medical supplies may be deducted from gross receipts and governmental gross receipts.
B. The purpose of the deduction provided in this section is to help protect jobs and retain businesses in New Mexico that sell or rent durable medical equipment and medical supplies.
C. A taxpayer allowed a deduction pursuant to this section shall report the amount of the deduction separately in a manner required by the department.
D. The deduction provided in this section shall be taken only by a taxpayer participating in the New Mexico medicaid program whose gross receipts are no less than ninety percent derived from the sale or rental of durable medical equipment, medical supplies or infusion therapy services, including the medications used in infusion therapy services.
E. Acceptance of a deduction provided by this section is authorization by the taxpayer receiving the deduction for the department to reveal information to the revenue stabilization and tax policy committee and the legislative finance committee necessary to analyze the effectiveness and cost of the deduction and whether the deduction is performing the purpose for which it was created.
F. The department shall compile an annual report on the deduction provided by this section that shall include the number of taxpayers approved by the department to receive the deduction, the aggregate amount of deductions approved and any other information necessary to evaluate the effectiveness of the deduction. The department shall present the report to the revenue stabilization and tax policy committee and the legislative finance committee with an analysis of the effectiveness and cost of the deduction and whether the deduction is performing the purpose for which it was created.
G. As used in this section:
(1) "durable medical equipment" means a medical assistive device or other equipment that:
(a) can withstand repeated use;
(b) is primarily and customarily used to serve a medical purpose and is not useful to an individual in the absence of an illness, injury or other medical necessity, including improved functioning of a body part;
(c) is appropriate for use at home exclusively by the eligible recipient for whom the durable medical equipment is prescribed; and
(d) is prescribed by a physician or other person licensed by the state to prescribe durable medical equipment;
(2) "infusion therapy services" means the administration of prescribed medication through a needle or catheter;
(3) "medical supplies" means items for a course of medical treatment, including nutritional products, that are:
(a) necessary for an ongoing course of medical treatment;
(b) disposable and cannot be reused; and
(c) prescribed by a physician or other person licensed by the state to prescribe medical supplies; and
(4) "prescribe" means to authorize the use of an item or substance for a course of medical treatment.
History:
Laws 2014, ch. 26, § 1; 2020, ch. 18, § 1.
ANNOTATIONS
The 2020 amendment,
effective July 1, 2020, extended the sunset date for a gross receipts tax and governmental gross receipts tax deduction for durable medical equipment and medical supplies, and changed the reporting requirement for the taxation and revenue department regarding the effectiveness and cost of the deduction from being presented every five years to every year; in Subsection A, added "Prior to July 1, 2030", and after the first occurrence of "receipts", deleted "from transactions occurring prior to July 1, 2020 that are"; and in Subsection F, after "the effectiveness of the deduction.", deleted "Beginning in 2019 and every five years thereafter", after "shall", deleted "compile and", and after "present the", deleted "annual reports" and added "report".