NMSA 1978, § 7-9-73.3 — 7-9-73.3

Deduction; gross receipts tax and governmental gross
receipts tax; durable medical equipment; medical supplies.

# A.

Prior to July 1, 2030, receipts from the sale or rental of durable medical
equipment and medical supplies may be deducted from gross receipts and
governmental gross receipts.

# B.

The purpose of the deduction provided in this section is to help protect jobs and
retain businesses in New Mexico that sell or rent durable medical equipment and
medical supplies.

# C.

A taxpayer allowed a deduction pursuant to this section shall report the amount
of the deduction separately in a manner required by the department.

# D.

The deduction provided in this section shall be taken only by a taxpayer
participating in the New Mexico medicaid program whose gross receipts are no less
than ninety percent derived from the sale or rental of durable medical equipment,
medical supplies or infusion therapy services, including the medications used in infusion
therapy services.

# E.

Claiming a deduction provided by this section is authorization by the taxpayer
receiving the deduction for the department to reveal return information necessary to
comply with the requirements of Section 7-1-84 NMSA 1978.

# F.

The deduction provided by this section shall be included in the tax expenditure
budget pursuant to Section 7-1-84 NMSA 1978, including the annual aggregate cost of
the deduction.

# G.

As used in this section:
(1) "durable medical equipment" means a medical assistive device or other
equipment that:
(a) can withstand repeated use;
(b) is primarily and customarily used to serve a medical purpose and is not
useful to an individual in the absence of an illness, injury or other medical necessity,
including improved functioning of a body part;
(c) is appropriate for use at home exclusively by the eligible recipient for
whom the durable medical equipment is prescribed; and
(d) is prescribed by a physician or other person licensed by the state to
prescribe durable medical equipment;
(2) "infusion therapy services" means the administration of prescribed
medication through a needle or catheter;
(3) "medical supplies" means items for a course of medical treatment,
including nutritional products, that are:
(a) necessary for an ongoing course of medical treatment;
(b) disposable and cannot be reused; and
(c) prescribed by a physician or other person licensed by the state to
prescribe medical supplies; and
(4) "prescribe" means to authorize the use of an item or substance for a
course of medical treatment.