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committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports
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F I S C A L I M P A C T R E P O R T
SPONSOR Rawson
DATE TYPED 3-03-2005 HB
SHORT TITLE Armed Forces Member Child Care Gross Receipts SB 1049
ANALYST Taylor
REVENUE
Estimated Revenue
Subsequent
Years Impact
Recurring
or Non-Rec
Fund
Affected
FY05
FY06
($8.0)
($8.0) Recurring State General Fund
($5.0)
($5.0) Recurring Local Governments
(Parenthesis ( ) Indicate Revenue Decreases)
SOURCES OF INFORMATION
LFC Files
SUMMARY
Senate Bill 1049 provides a gross receipts tax deduction for receipts from providing child care
services if the person providing the service is a spouse of members of the U.S. armed forces.
The bill has an effective date of July 1, 2005.
FISCAL IMPLICATIONS
The taxation and revenue department estimates that this bill would reduce state general fund
revenue by $8 thousand dollars and local government funds by $5 thousand.
TRD estimates that there are 11,192 persons on activity duty in New Mexico, and that 53 percent
or 5,920 are married. They used these figures as a basis for estimating the number of child care
services owned by spouses of active service members. The estimated tax base was $200,000.
Applying an average statewide gross receipts tax rate of 6.6 percent, implies a revenue loss of
about $13,000. Sixty percent of this is allocated to the general fund and $5 thousand to local
government funds.
ADMINISTRATIVE IMPLICATIONS
TRD reports that administrative issues are minimal.
BT/lg