HB 47 — EXCLUDE HOME HEALTH CARE FROM DSB SOURCING

HOUSE BILL 47 55TH LEGISLATURE -STATEOFNEWMEXICO-- STATEOFNEWMEXICO- SECOND SESSION , 2022 INTRODUCED BY Christine Chandler and Deborah A.

Brown and Martin Hickey 7This 9document ANmay ACTincorporate RELATINGamendments TOproposed TAXATION;by a committee, but not yet adopted, as well as amendments that have been adopted during the current legislative session.

EXCLUDINGThe PERSONALdocument CAREis SERVICES,a HOMEtool HEALTHto CAREshow ANDamendments HOSPICEin CAREcontext FROMand DESTINATION-BASEDcannot SOURCINGbe RULESused FORfor PURPOSESthe OFpurpose DETERMININGof GROSSadding RECEIPTSamendments TAXto LIABILITY;legislation.

DECLARING AN EMERGENCY.ACT h RELATING TO TAXATION;

16EXCLUDING BEPERSONAL ITCARE ENACTEDSERVICES, BYHOME THEg LEGISLATUREo OFHEALTH THECARE STATEAND HOSPICE CARE FROM DESTINATION-BASED SOURCING t hr g e i k RULES FOR PURPOSES OF NEWDETERMINING MEXICO:GROSS RECEIPTS TAX LIABILITY;

eh tr 17i SECTIONs 1.DECLARING AN EMERGENCY.

Sectionh 7-1-14, NMSAt, 1978e (beingu Lawsg 2020,e wb l ne de 18h ChapterBE 80,IT SectionENACTED 1)BY isTHE amendedLEGISLATURE toOF read:THE STATE OF NEW MEXICO:

n d d i = = 19o ah lSECTION "7-1-14.1.

BUSINESSSection LOCATION7-1-14 INSTRUCTIONSNMSA FOR1978 PURPOSES(being OFLaws i2020, al e] rb 20,d REPORTINGi GROSS RECEIPTS AND USE--LOCATION-CODE DATABASE AND a tº me mChapter 2180, LOCATION-RATESection DATABASE.--1) dis ramended eto 22read: A.

Forr purposesi of= ther Grosst Receipts and c e sw kd 23m Compensating Tax Act, Interstate Telecommunications Gross e a n bo 24"7-1-14. Receipts Tax Act, Leased Vehicle Gross Receipts Tax Act and any u [ act authorizing the imposition of a local option gross receipts .221841.2 or compensating tax, a person that has gross receipts and a person using property or services in New Mexico in a taxable manner shall report the gross receipts to the proper business location as provided in this section.

HHHCºBUSINESS LOCATION INSTRUCTIONS FOR d m :

b e d s º o t n = .221841.2AIC January 27, 2022 (9:55am) s k m e e a n e d r e l u [ A d PURPOSES OF»HHHC HHHCºSOURCING RULES--»HHHC REPORTING GROSS RECEIPTS AND USE--LOCATION-CODE DATABASE AND LOCATION-RATE DATABASE.-- A.

For purposes of the Gross Receipts and Compensating Tax Act, Interstate Telecommunications Gross Receipts Tax Act, Leased Vehicle Gross Receipts Tax Act and any act authorizing the imposition of a local option gross receipts or compensating tax, a person that has gross receipts and a person using property or services in New Mexico in a taxable manner shall report the gross receipts to the proper business location as provided in this section.

The business location for gross receipts from h the sale or license of tangible personal property, and any u » r related deductions, shall be at the following locations:

t h g e l i (1) if the property is received by the h r i s purchaser at the New Mexico businessHHHCº business»HHHC location of the h , e h seller, the location of the seller;

t u g e b l e e , gh (2) if the property is not received by the n d d i = = o h purchaser at HHHCº a businessbusiness»HHHC HHHCºthe»HHHC location of l ] b ,d i a º r the seller, the location e t 17 indicated by instructions for delivery toe ther purchaser,= ort thee w ld m a n do 18to the purchaser, or the purchaser's donee, when known to the seller;d m :

=b =r 19 a l (3) if Paragraphs (1) and (2) of this i a e rt 20º subsectiono dot notn apply,= the.221841.2AIC locationJanuary indicated27, by2022 an(9:55am) addresss ak t m me 21- for2 the- purchasere availablea fromn thee business records of the d r e 22l selleru that[ areA maintainedd inseller; the ordinary course of business;

c(3) eif sParagraphs k(1) 23and provided(2) thatof usethis ofsubsection do not apply, the location indicated by an address doesfor notthe constitutepurchaser badavailable faith;from the business records of the seller that are maintained in the ordinary course of business;

eprovided athat nuse b 24 (4) if Paragraphs (1) through (3) of this u [ subsection do not apply, the location for the purchaser .221841.2 - 2 - obtained during consummation of the sale, including the address ofdoes anot purchaser'sconstitute paymentbad instrument,faith; if no other address is available;

(4) if Paragraphs (1) through (3) of this subsection do not apply, the location for the purchaser obtained during consummation of the sale, including the address of a purchaser's payment instrument, if no other address is available;

or (5) if Paragraphs (1) through (4) of this subsection do not apply, including a circumstance in which the seller is without sufficient information to apply those standards, the location from which the property was shipped or h transmitted.

u » r D.

The business location for gross receipts from t h g e l i the lease of tangible personal property, including vehicles, h r i s other transportation equipment and other mobile tangible h , e h personal property, and any related deductions, shall be the t u g e b l e e , gh location of primary use of the property, as indicated by the n d d i = = o h address for the property provided by the lessee that is l ] b ,d i a º r available to the lessor from the lessor's records maintained in e r = t 17e w d m a n o the ordinary course of business;

provided that use of this w l n d 18m address: does not constitute bad faith.

Theb primaryr businesse =t =º 19o at ln location= shall.221841.2AIC notJanuary be27, altered2022 by(9:55am) intermittents usek atm different i a e r- 203 locations,- suche asa usen ofe businessd propertyr thate accompaniesl au t[ mA md 21address employeesdoes onnot businessconstitute tripsbad andfaith. service calls.

dThe rHHHCºprimary ebusiness 22location»HHHC E.HHHCºlocation of primary use»HHHC shall not be altered by intermittent use at different locations, such as use of business property that accompanies employees on business trips and service calls.

TheE. business location for gross receipts from c e s k 23 the sale, lease or license of franchises, and any related e a n b 24 deductions, shall be where the franchise is used.

uThe [business F.location for gross receipts from the sale, lease or license of franchises, and any related deductions, shall be where the franchise is used.

TheF. business location for gross receipts from .221841.2 - 3 - the performance or sale of the following services, and any related deductions, shall be at the following locations:

(1)The forbusiness professionallocation servicesfor performedgross inreceipts Newfrom Mexico,the otherperformance than construction-related services, or performedsale outside New Mexico when the product of the servicefollowing isservices, initiallyand usedany inrelated Newdeductions, Mexico,shall thebe locationat of the performerfollowing oflocations: the service or seller of the product of the service, as appropriate;

(2)(1) for homeprofessional healthservices services,performed hospicein servicesNew andMexico, personalother carethan servicesconstruction-related services, or performed outside New Mexico when the product of the service is initially used in New Mexico, the location of the performer of the service or seller of the product of the service;service, as h appropriate;

[(2)]u (3)» r (2) for constructionhome serviceshealth andservices, construction-relatedhospice services performedt forh ag constructione projectl i and personal care services performed in New Mexico, the h r i s location of the constructionperformer site;of the service or seller of the h , e h product of the service;

[(3)]t (4)u g e b l e e , gh [(2)] (3) for construction services withand respectn tod thed ei t= 17= sellingo ofh realconstruction-related estateservices locatedperformed for a construction l ] b ,d i a º r project in New Mexico, the location of w l n d 18 the realconstruction estate;site;

=e r = 19t ae lw [(4)]d (5)m for transportation of persons or i a en ro 20[(3)] property(4) in,for intoservices orwith fromrespect Newto Mexico, the locationd where the a t m m: 21 person or property enters the vehicle;

andb d r e 22t [(5)]º (6)o fort servicesn other= than.221841.2AIC thoseJanuary c27, e2022 (9:55am) s k 23m describede in- Paragraphs4 (1)- throughe [(4)]a (5)n ofe thisd r e al nu b[ 24A subsection,d theselling locationof wherereal theestate productlocated ofin New Mexico, the servicelocation isof uthe [real delivered.estate;

.221841.2[(4)] -(5) 4for -transportation G.of persons or property in, into or from New Mexico, the location where the person or property enters the vehicle;

Exceptand as[(5)] provided(6) infor Subsectionservices Hother ofthan thisthose section,described usesin ofParagraphs property(1) orthrough services[(4) subject] to(5) theof compensatingthis taxsubsection, shall be reported at the business location atwhere which gross receipts would have been required to be reported had the transactionproduct beenof subject to the grossservice receiptsis tax.delivered.

G.

Except as provided in Subsection H of this section, HHHCº the business location for»HHHC uses of property or services subject to the compensating tax shall be HHHCºreported at»HHHC the HHHCºbusiness»HHHC location at which gross receipts would have been required to be reported had the transaction been subject to the gross receipts tax.

If a person subject to the compensating tax can h demonstrate that the first use upon which compensating tax is g o t hr imposed occurred at a time and place different from the time g e i k and place of the purchase, then HHHCº the business location for h r i s the»HHHC compensating tax shall be reported at the business h , t, e u g location of the first use.