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| SPONSOR: | Picraux | DATE TYPED: | 02/11/01 | HB | 492 | ||
| SHORT TITLE: | Home Health Care Gross Receipts Deduction | SB | |||||
| ANALYST: | Eaton | ||||||
| Subsequent
Years Impact |
Recurring
or Non-Rec |
Fund
Affected | ||
| FY01 | FY02 | |||
| $ (92.0) | $ (100.0) | Recurring | General Fund | |
| $ (72.0) | $ (79.0) | Recurring | Local Govt. | |
(Parenthesis ( ) Indicate Revenue Decreases)
Duplicates Senate Bill 347
SOURCES OF INFORMATION
Taxation and Revenue Department (TRD)
Health Policy Commission (HPC)
SUMMARY
Synopsis of Bill
This bill adds "home health agency" to the GRT deduction when the payment is received from the U.S. Government under the Medicare B program. This proposal joins last year's expansion to hospice receipts from Medicare. A home health agency must be licensed by the Department of Health and certified by the federal Health Care Financing Administration (HCFA).
FISCAL IMPLICATIONS
The Taxation and Revenue Department (TRD) estimate the full year impact will decrease general fund revenue by $100.0. Local Government revenues are anticipated to decrease by $79.0.
These impacts are primarily based on 1997 Economic Census of New Mexico, combined with a detailed analysis of gross receipts tax returns. The census reports 125 taxable establishments, with 3,469 employees and $116.8M in sales. An additional 31 establishments, with 1,668 employees and (possibly) $74.2M in sales are listed in the not-for-profit sector. Many ancillary services, including home health and nursing homes reported a decline in Medicare reimbursements from 1997 through 1999. This was a result of a deal cut in 1997's federal Balanced Budget Act of 1997 (BBA). Subsequent legislation has relaxed the provisions of BBA and testimony indicates a return to traditional levels of funding for nursing homes and home health agencies is likely. Accordingly, this estimate uses $116.8M for the base and 41.7% as the Medicare portion.
ADMINISTRATIVE IMPLICATIONS
Minimal.
JBE/njw:ar