NOTE: As provided in LFC policy, this report is intended 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.

The LFC is only preparing FIRs on bills referred to the Senate Finance Committee, the Senate Ways and Means Committee, the House Appropriations and Finance Committee and the House Taxation and Revenue Committee. The chief clerks are responsible for preparing and issuing all other bill analyses.

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(Parenthesis ( ) Indicate Revenue Decreases)

Duplicates/Conflicts with/Companion to/Relates to

SOURCES OF INFORMATION

Taxation and Revenue Department (TRD)

Department of Health (DOH)

SUMMARY

Synopsis of Bill:

This bill would exempt nursing homes licensed by the Department of Health from paying gross receipts tax.

FISCAL IMPLICATIONS

Taxation and Revenue estimates the total general fund impact to be $8.6 million. Human Services Department estimates that $3.7 million dollars in federal money coming to New Mexico would cease. The $3.7 would be for Medicaid eligible nursing homes gross receipts expenditures only. The ratio of matching funds for Medicaid expenditures is seventy-five percent federal, twenty-five percent state.

TECHNICAL ISSUES

Nursing home is not clearly defined and may exclude retirement communities that have live-in nurses and health care specialists.

OTHER SUBSTANTIVE ISSUES

TRD reports that in-home providers and for profit hospitals would also be logical candidates for exemption as they too provide care to the elderly.

The potential decrease in federal matching funds of $3.7 million represents almost one-half of this bill's total impact.

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