A provision in SB96 eliminates municipal business registration fees for child care facilities—here's what changed and when.
Most New Mexico business owners don't realize that a zoning bill passed recently contains a provision that fundamentally changes how municipalities can charge child care facilities for business registration. Understanding this change matters if you're involved in municipal licensing, business compliance, or simply want to know how your local regulatory landscape is shifting.
Senate Bill 96, titled "Regulated Child Care Zoning Requirements," addresses zoning rules for child care facilities across the state. Buried in that bill is Section 3, which amends the state statute governing municipal business registration and licensing fees (3-38-4 NMSA 1978). The amendment is straightforward: it exempts child care facilities from paying municipal business registration and licensing fees entirely.
This means that licensed child care centers, registered child care homes, licensed family child care homes, and licensed group child care homes no longer have to pay the recurring annual fees that municipalities currently impose on most businesses operating within their jurisdictions. For child care operators, this eliminates an annual cost obligation that has been standard practice.
The exemption applies specifically to child care facilities that hold one of these licenses or registrations:
If your municipality currently collects business registration fees from these types of facilities, this provision requires a change to your fee structure or collection process. Municipalities will no longer have the authority to require these fees from regulated child care providers.
The exemption becomes effective on July 1, 2026. This gives municipalities and child care operators a window to adjust their processes, billing systems, and compliance procedures before the change takes hold.
If you operate a child care facility or manage municipal licensing, the practical steps are clear: child care providers should expect to stop paying these fees after July 1, 2026, and municipalities should plan to remove child care facilities from their business registration fee rolls by that date.
This change reflects a policy decision to reduce regulatory costs for the child care sector specifically. Child care is considered essential infrastructure in most communities, and lowering the cost of operation may be intended to support affordability and availability. For municipalities, it means losing a revenue stream from this category of business, so budget planning should account for that loss.
The provision is found in Section 3 of SB96, on pages 7–8 of the bill text, and amends Section 3-38-4 NMSA 1978.
For a detailed, free breakdown of how this change affects your specific situation, contact your local municipal clerk's office or your state child care licensing division.