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

 

 

SPONSOR:

Stewart

 

DATE TYPED:

2/9/03

 

HB

473

 

SHORT TITLE:

Nursing Home Gross Receipts Exemption

 

SB

 

 

 

ANALYST:

Smith

 

REVENUE

 

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

 

 

 

 

(3,700.0)

(4,000.0a)

Recurring

General Fund

 

(3,300.0)

(3,600.0)

Recurring

Local Governments

(Parenthesis ( ) Indicate Revenue Decreases)

 

Duplicates SB407

 

SOURCES OF INFORMATION

 

Responses Received From

 

TRD

 

SUMMARY

 

     Synopsis of Bill

 

House Bill 473 enacts a new section of the Gross Receipts and Compensating Tax Act to provide a gross receipts tax exemption for the receipts of nursing homes licensed by the Department of Health.

 

FISCAL IMPLICATIONS

 

TRD relied on data from the Department of Health. The Health Licensing and Certification Bureau indicates there were 84 nursing homes licensed in New Mexico in 2000.  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 and the department’s “Analysis of Gross Receipts by Standard Industrial Classification” (Report-80) was used to derive a tax base of $125 million for the estimate presented above.

 

OTHER SUBSTANTIVE ISSUES

 

The federal government funds a substantial portion of nursing home care through the Medicare and Medicaid programs.  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 paid by Medicaid, Medicare paid 14.8% and private pay and insurance paid 26.1%.

 

SS/yr