Follow-up from the original bill SB 475 COUNSELING & THERAPY GROSS RECEIPTS
This bill was passed through all committees during this legislative session and then added to HB 547 PUBLIC PEACE, HEALTH, SAFETY & WELFARE TAX CHANGES. It was then passed by committees and then sent to the House and Senate Floors, where they added suggestions and revisions, where it ultimately was agreed upon and sent to the Governor’s desk for signature. On April 7, 2023, the Governor signed off on this bill and put this into effect starting the new fiscal year (July).
Please see HB 547 Section 36. p. 103-109
SECTION 36. Section 7-9-93 NMSA 1978 (being Laws 2004, Chapter 116, Section 6, as amended) is amended to read: “7-9-93. DEDUCTION–GROSS RECEIPTS–CERTAIN RECEIPTS FOR SERVICES PROVIDED BY HEALTH CARE PRACTITIONER OR ASSOCIATION OF HEALTH CARE PRACTITIONERS.
For a general overview, there were 40 sections, and many bills lumped into this bill. Many were vetoed, but our bill made it. Although this bill does not fully cover or remove GRTs (Gross Receipt Tax) as initiated, it does apply to commercial contract services or Medicare Part C services – where GRTs are deducted for copays and deductibles. This takes effect in July, but due to the GRT filing process, the benefit would apply in August onward for the next 5 years. We can advocate to renew or revise the current legislation at that time.
In addition, by the statute listed below, GRTs can be covered by Managed Health Care Providers. To take the benefit (under HB 547), a provider must also have taken the deduction (under Sect. 7-9-93) by contacting Managed Health Care Provider (Ex., Presbyterian, BCBS, Western Sky, etc.) that a provider is contracted with and adding it to your contract. (Section 36C) This bill applies to mental health providers (licensed: psychologist, professional clinical mental health counselor, marriage and family therapist, art therapist, independent social worker) and medical professionals under the Medical Practice Act (licensed: chiropractic physician, dentist or dental hygienist, oriental medicine, optometrist, osteopathic physician, physical therapist, physician or physician assistant, podiatrist, respiratory care practitioner, speech-language pathologist, lay midwife, nurse or licensed practical nurse, occupational therapist, respiratory care practitioner, speech-language pathologist or audiologist) and to include a clinical laboratory, managed care health plan and managed care organization.
Please see N.M. Stat. Section 7-9-93
For specific questions, contact:
NM Taxation & Revenue Department
1-866-285-2996 or 505-841-6200
Advocate Tax Service: 505-837-5505