NM Legislature

Bill to eliminate GRT on early childcare centers passes first committee
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The House Education Committee unanimously passed a bill that would eliminate the Gross Receipts Tax on small business owners operating early childcare centers. HB 137, GRT Deductions for Child Care Assistance, will, if enacted, eliminate the 8 percent to 9 percent GRT that early childcare centers are required to pay on children who qualify for state assistance. State Rep. Micaela Lara Cadena, a Democrat from Mesilla, sponsored the bill and she called the bill an equity issue as most early childcare centers are operated by women of color. Cadena said that early childcare centers that serve Children Youth and Families Department contracts “have to pay GRT on those same contracts and reimbursement rates.”
“We hold providers to really high standards. We expect them to meet those same outcomes, have the same quality of care and we expect them to meet that with 8 percent or more less revenue.