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 enhance the financial relief available to health care practitioners by broadening the types of patient payments that qualify for deductions.

Additionally, the bill clarifies the definition of "association of health care practitioners" by excluding certain entities such as health maintenance organizations and various types of care facilities, while also refining the definitions of copayment and coinsurance. The legislation mandates that the deductions be reported separately by taxpayers and requires the department to compile an annual report on the deductions claimed, including the number of taxpayers and the total amount of deductions. This report will be presented to relevant legislative committees to assess the effectiveness of the deductions.

Statutes affected:
introduced version: 7-9-93