AI Generated Opinion Summaries

This summary was computer-generated without any editorial revision. It is not official, has not been checked for accuracy, and is NOT citable.

Facts

• Between January 31, 2013, and April 30, 2019, Robison Medical Resource Group, LLC (Robison), a medical staffing company, had commercial contracts with the Department of Veterans Affairs and Indian Health Service to provide health care services through its nurse employees. In 2020, the New Mexico Taxation and Revenue Department assessed Robison for unpaid gross receipts taxes for the years 2013 through 2019. Robison filed a timely protest, claiming a tax deduction for gross receipts on behalf of its nurse employees for each tax year during the assessment period (paras 2-3).

Procedural History

• [Not applicable or not found]

Parties' Submissions

• Protestant-Appellee (Robison Medical Research Group, LLC): Argued that it is entitled to the tax deduction for gross receipts on behalf of its nurse employees under the historical statutes, regardless of whether the 2007 or 2016 version of NMSA 1978, Section 7-9-93(A) applies, as the two statutes do not significantly or materially differ (paras 4-5).
• Respondent-Appellant (New Mexico Taxation & Revenue Department): Contended that Robison is not entitled to the deduction under any version of the statute and that the hearing officer's decision, which allowed Robison the deduction, was incorrect. The Department also argued that a regulation permitting some corporate entities to claim the deduction expands the definition of a health care practitioner beyond the statute's intent and is therefore invalid (paras 3, 12).

Legal Issues

• Whether the New Mexico Taxation and Revenue Department's assessment of unpaid gross receipts taxes against Robison Medical Research Group, LLC, for the years 2013 through 2019 was correct in denying a tax deduction for gross receipts on behalf of its nurse employees.
• Whether Robison Medical Research Group, LLC, is entitled to the tax deduction for gross receipts on behalf of its nurse employees under NMSA 1978, Section 7-9-93(A) (2007 or 2016), and the accompanying regulation 3.2.241.13 NMAC.

Disposition

• The Court of Appeals affirmed the hearing officer’s determination that Robison Medical Research Group, LLC, is entitled to take the deduction of gross receipts on behalf of its nurse employees under the previous historical statutes, either NMSA 1978, Section 7-9-93(A) (2007) or NMSA 1978, Section 7-9-93(A) (2016) (para 1).

Reasons

• WRAY, Judge (KRISTINA BOGARDUS, Judge and ZACHARY A. IVES, Judge concurring):
  The Court found that the statutory amendments and accompanying regulations do not limit the deduction to only individual health care practitioners. Instead, the regulations, specifically 3.2.241.13 NMAC, allow various entities, not just health care practitioners, to take the deduction for services provided on their behalf by health care practitioner employees, provided the entity is not otherwise excluded and the remaining requirements under the statute are satisfied (paras 6-12).
  The Court disagreed with the Department's argument that the regulation allowing entities to deduct "its receipts" is inconsistent with the statute, which refers to "[r]eceipts of a health care practitioner." The Court interpreted the 2021 amendment to the statute as a clarification of existing law rather than a change, supporting the view that entities could take the deduction on behalf of health care practitioner employees prior to the amendment (para 13).
  The Court distinguished this case from the Golden Services case, noting that the present case involves stipulated facts establishing that all conditions of the statute were met for Robison to be entitled to the deduction. The Court concluded that the hearing officer’s decision was not arbitrary, capricious, an abuse of discretion, or contrary to law and was supported by the evidence (paras 14-16).