Overview of Tax Changes
The New Mexico Taxation and Revenue Department has issued a publication that explains the gross receipts tax and governmental gross receipts tax changes for hospitals arising out of statutory changes enacted during the 2019 legislative session and effective July 1, 2019.
The publication provides a summary overview of:
- Governmental gross receipts tax
- Gross receipts tax
- Compensating tax
These taxes apply to government, nonprofit, and for-profit hospitals.
Key Points of the Publication
- A list of possible exemptions or deductions that may apply to this industry is included.
- The changes effective July 1, 2019, made all hospitals taxable, regardless of their tax status.
- A credit for certain hospitals was repealed.
- The deduction allowed under NMSA 1978 § 7-9-73.1 was increased.
Purpose of the Publication
The publication provides a general explanation of the changes for hospital taxation to assist taxpayers.
Source: FYI-207: Gross Receipts Tax Information for Hospitals, N.M. Taxation and Revenue Department, 11/01/2022
Frequently Asked Questions
What is the purpose of the gross receipts tax changes for hospitals in New Mexico?
The changes aim to provide clarity and ensure uniform tax treatment for all hospitals, governmental, nonprofit, and for-profit, by making them all subject to gross receipts tax starting July 1, 2019.
Are all hospitals in New Mexico now required to pay gross receipts tax?
Yes, under the changes effective July 1, 2019, all hospitals regardless of tax status are subject to gross receipts tax.
Was any previous hospital tax relief affected by these changes?
Yes, a credit that was previously available to certain hospitals was repealed as part of the legislative updates.
What deduction was impacted by the 2019 legislative session?
The deduction under NMSA 1978 § 7-9-73.1 was increased, allowing hospitals to claim a larger deduction under that statute.
What types of taxes are outlined in the FYI-207 publication?
The publication provides a summary of the gross receipts tax, governmental gross receipts tax, and compensating tax, all of which apply to hospital operations across various ownership types.