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

 

 

 

SPONSOR:

Youngberg

 

DATE TYPED:

2/28/03

 

HB

868

 

SHORT TITLE:

Home School Income Tax Deduction

 

SB

 

 

 

ANALYST:

Smith

 

REVENUE

 

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

 

 

 

 

(1,330.0)

(1,444.0)

Recurring

General Fund

 

 

 

 

 

 

(Parenthesis ( ) Indicate Revenue Decreases)

 

SOURCES OF INFORMATION

 

Responses Received From

 

TRD

 

SUMMARY

    

     Synopsis of Bill

 

House Bill 868 would allow a $1,000 personal income tax deduction for each dependent that attends a home school or a “nongovernmental” school for more than six months during a tax year. Husbands and wives who file separate returns in a year in which they could have filed a joint return would each be allowed to claim half the deduction allowed under a joint return. Dependents for whom the deduction is allowed must be between the ages of five and eighteen years prior to September 1 of the school year.

 

FISCAL IMPLICATIONS

 

According to the State Department of Education, (SDE) approximately 6,500 New Mexico children currently receive home schooling. SDE also reports that approximately 24,000 students in New Mexico attend accredited “nonpublic” school annually. Hence approximately 30,500 students would qualify for the deduction.  The average effective New Mexico personal income tax


rate is approximately 4.7 percent, according to statistics compiled by the Department. Hence the $1.44 million estimate shown above is the product of the deduction amount, the average rate and the number of likely deductions, i.e., 30,500 x .047 x $1,000.

 

SS/njw