HOUSE BILL 52

50th legislature - STATE OF NEW MEXICO - second session, 2012

INTRODUCED BY

Jim R. Trujillo and John M. Sapien

AN ACT

RELATING TO TAXATION; PROVIDING A DEDUCTION FROM GROSS RECEIPTS FOR RECEIPTS FROM THE STATE FOR CHILD DAYCARE SERVICES FOR ELIGIBLE FAMILIES.

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

     SECTION 1. A new section of the Gross Receipts and Compensating Tax Act is enacted to read:

     "[NEW MATERIAL] DEDUCTION--GROSS RECEIPTS--CHILD DAYCARE SERVICES--RECEIPTS FROM STATE.--

          A. Until July 1, 2020, receipts from the state for fees paid to a provider for providing child daycare services for families qualified to receive assistance from the state to pay for all or part of child daycare services may be deducted by the provider from gross receipts.

          B. The purposes of the deduction authorized by this section are:

                (1) to reduce costs of providing child daycare services for private, for-profit daycare providers so that the costs are equivalent to the costs of providing child daycare services for not-for-profit providers; and

                (2) to encourage more child daycare providers to open child daycare businesses."

     SECTION 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2012.

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