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)

Children Youth and Families Department (CYFD)

SUMMARY

Synopsis of Bill:

This bill proposes to create a new deduction from gross receipts for the receipts from the sale of child day care services in a private residence.

FISCAL IMPLICATIONS

This legislation will reduce state revenues by $6.1 million dollars. The Children Youth and Families Department distributes $25 million in subsidies to daycare annually. As the savings in daycare are passed on, the subsidy amount for CYFD will decrease.

OTHER SUBSTANTIVE ISSUES

In home day-care need not be licensed with the state. The language of the bill may be changed to from "compliance" to "licensed". This would allow oversight, and allow the Taxation and Revenue Department better monitor and track the fiscal impacts of this legislation.

POSSIBLE QUESTIONS

What is the relief for child day care provided by current legislation?

What additional relief would this legislation provide the parents of children in child day care homes?

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