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F I S C A L   I M P A C T   R E P O R T

 

 

SPONSOR:

Cervantes

 

DATE TYPED:

02/03/02

 

HB

300

 

SHORT TITLE:

Nursing Home Gross Receipts Deduction

 

SB

 

 

 

ANALYST:

Smith

 

REVENUE

 

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY02

FY03

 

 

 

 

($522.0)

 

Recurring

General Fund

 

($442.0)

 

Recurring

Local Gov’t

 

(Parenthesis ( ) Indicate Revenue Decreases)

 

Duplicates SB 207

 

SOURCES OF INFORMATION

 

Taxation and Revenue Department (TRD)

 

SUMMARY

 

     Synopsis of Bill

 

This bill amends Section 7-9-77.1 NMSA 1978 to provide a gross receipts tax deduction to New Mexico-based nursing homes for receipts derived from Medicare payments.  To qualify for the deduction, nursing homes must be licensed by the Department of Health. 

 

FISCAL IMPLICATIONS

 

The Health Licensing and Certification Bureau of the Department of Health indicates there are 84 nursing homes currently licensed in New Mexico.  According to the bureau, licensed nursing homes do not include residential mental health or substance abuse facilities, but do include some community care facilities for the elderly.   Data from the 1997 Economic Census of Health Care and Social Assistance was used to derive a taxable gross receipts base of $117 million for the FY 2003.  Data from the Centers for Medicare and Medicaid Services (formerly the Health Care Financing Administration) indicate that of total money paid to nursing homes in New Mexico for 1998, 59.1% was

derived from Medicaid, Medicare paid 14.8% and private pay and insurance paid 26.1%.  Therefore, approximately $17 million dollars in Medicare receipts will qualify for the deduction. 

 

SS/ar


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