HOUSE BILL 258

48th legislature - STATE OF NEW MEXICO - second session, 2008

INTRODUCED BY

Jim R. Trujillo

AN ACT

RELATING TO TAXATION; PROVIDING A CREDIT TO BE TAKEN AGAINST GROSS RECEIPTS TAXES DUE FOR RECEIPTS FROM PROVIDING CHILD DAYCARE SERVICES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. A new section of the Tax Administration Act is enacted to read:

     "[NEW MATERIAL] DISTRIBUTION ADJUSTMENT--TAX ADMINISTRATION SUSPENSE FUND--CREDIT FOR LICENSED CHILD DAYCARE PROVIDERS.--Distributions from the tax administration suspense fund to the general fund of net receipts attributable to the gross receipts tax shall be adjusted for the full cost of credits issued pursuant to the Gross Receipts and Compensating Tax Act for receipts of child daycare providers licensed by the children, youth and families department."

     Section 2. A new section of the Gross Receipts and Compensating Tax Act is enacted to read:

     "[NEW MATERIAL] CREDIT--GROSS RECEIPTS TAX--CHILD DAYCARE SERVICES.--

          A. A child daycare provider may claim a credit for each reporting period against the gross receipts tax due for a reporting period beginning on or after July 1, 2008 as follows:

                (1) for a child daycare provider located in a municipality, the credit claimed may be in an amount equal to three and seven hundred seventy-five thousandths percent of the child daycare provider's taxable gross receipts for that reporting period after all applicable deductions have been taken; and

                (2) for a child daycare provider located in the unincorporated area of a county, the credit claimed may be in an amount equal to five percent of the child daycare provider's taxable gross receipts for that reporting period after all applicable deductions have been taken.

          B. As used in this section, "child daycare provider" means a person that provides child daycare services and is licensed by the children, youth and families department."

     Section 3. APPLICABILITY.--The provisions of this act are applicable beginning on July 1, 2008 and in subsequent gross receipts reporting periods.

     Section 4. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2008.

- 3 -