[1] NOTE:  As provided in LFC policy, this report is intended only for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

 

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F I S C A L   I M P A C T   R E P O R T

 

 

 

SPONSOR:

Russell

 

DATE TYPED:

01/31/02

HB

132

 

SHORT TITLE:

Home School Tax Credit

 

SB

 

 

 

ANALYST:

Neel

 

 

REVENUE

 

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY02

FY03

 

 

 

 

($3,366.0)

($3,366.0)

Recurring

General Fund

 

(Parenthesis ( ) Indicate Revenue Decreases)

 

SOURCES OF INFORMATION

 

LFC files

Taxation and Revenue Department (TRD)

 

SUMMARY

 

     Synopsis of Bill

 

House Bill 132 enacts a new section of the Income Tax Act to allow a $.25 refundable personal income tax credit per semester and dependent, with a ceiling of $.5 per taxable year per dependent.  HB 132 defines this credit as the “Home School Tax Credit.”

 

     Significant Issues

 

Home School is defined in statute, Section 22-1-2(V) NMSA 1978 as the operation by a parent, guardian or other person having custody of a school-age person who instructs a home study program that provides a basic academic educational program, including but not limited to reading, language arts, mathematics, social studies and science.  Therefore, freelance home schoolers will not be eligible for the “Home School Tax Credit.”

 

 

 

 

 

 

FISCAL IMPLICATIONS

 

TRD’s fiscal impact is based on figures provided by the State Department of Education (SDE) that indicates 6,732 New Mexico Children were enrolled in home-schooling programs in 2000.  TRD multiplies the enrollment (7,732) by the tax credit of $250 to derive their fiscal impact figure. 

 

TRD’s figures calculate the tax credit on annual enrollment rather than on a per-semester enrollment figure.  Therefore, under TRD’s assumptions, the fiscal impact would actually be $3.4 million. 

 

Effective Date January 1, 2002

 

SN/ar

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