New Mexico Legislature passes House Bill 357 to exempt taxes from Mi Via budgets

House Bill 357, introduced by Representative Tara L. Lujan on February 21, 2025, aims to reform the budgeting process for participants in New Mexico's Mi Via waiver program by excluding health care provider gross receipts taxes from their budget calculations. This legislative move seeks to alleviate financial burdens on individuals receiving support through this program, which assists those with disabilities in managing their care.

The Mi Via waiver program allows participants to have more control over their services and supports, but the inclusion of gross receipts taxes in their budget has raised concerns about the adequacy of funds available for essential care. House Bill 357 proposes that these taxes be billed and reimbursed separately, ensuring that they do not diminish the resources available for participants' individual needs.

Supporters of the bill argue that this change is crucial for enhancing the quality of life for individuals relying on the Mi Via program, as it allows for more accurate budgeting and better access to necessary services. By removing the financial strain caused by these taxes, the bill could lead to improved health outcomes and greater independence for participants.

However, the bill has sparked discussions regarding its potential impact on state revenue and the overall funding of health care services. Critics express concerns that separating these costs could lead to budgetary challenges for the state, potentially affecting the sustainability of the Mi Via program in the long run.

As the legislative session progresses, the implications of House Bill 357 will be closely monitored by advocates and stakeholders. If passed, this bill could represent a significant step toward improving the financial framework of public assistance programs in New Mexico, ultimately benefiting some of the state's most vulnerable residents. The ongoing debates surrounding the bill highlight the delicate balance between providing necessary support and maintaining fiscal responsibility within state programs.