This bill amends the existing gross receipts tax deduction for health care practitioners in New Mexico to include coinsurance, copayments, and deductibles paid by patients for commercial contract services. Specifically, it allows these payments to be deducted from gross receipts if the services provided fall within the practitioner's scope of practice. The amendment is set to take effect on July 1, 2025, and is intended to provide financial relief to health care practitioners by broadening the scope of deductible receipts.

Additionally, the bill clarifies the definitions of terms related to health care services, including "coinsurance," "copayment," and "deductible," while also specifying that the deductions will only apply to gross receipts remaining after all other allowable deductions have been taken. The bill mandates that taxpayers claiming these deductions report them separately, and it requires the department to compile an annual report on the deductions, including the number of taxpayers claiming them and the total amount deducted. This report will be presented to relevant legislative committees for evaluation.

Statutes affected:
introduced version: 7-9-93