Health Care Services Gross Receipts Tax Deduction Section 7-9-93 NMSA 1978

Effective January 1, 2005, Section 7-9-93 offers a gross receipts tax deduction for receipts from certain health care services.

Section 7-9-93 offers a gross receipts tax deduction for some licensed health care practitioners for services performed under contract to managed health care providers and health care insurers. Prepaid dental plans are included. The deduction is limited to the commercial portion of contract services (services for other than Medicare and Medicaid patients) and to Medicare Part C services. Fee-for-service payments do not qualify. Payments made directly by patients to practitioners, including co-payments, are still subject to gross receipts tax.

Eligible health care practitioners include chiropractors, dentists, dental hygienists, doctors of Oriental medicine, optometrists, osteopathic physicians, physical therapists, physicians, physicians’ assistants, podiatrists, psychologists, registered lay midwives, registered and licensed practical nurses, occupational therapists, respiratory care practitioners, speech-language pathologists, audiologists, mental health counselors, marriage and family therapists, art therapists and independent social workers.

The tax cuts are paid for by the repeal of the .5% municipal credit.

Medical Tax Deduction