HOUSE BILL 280

56th legislature - STATE OF NEW MEXICO - second session, 2024

INTRODUCED BY

James G. Townsend and Rod Montoya and Mark Duncan

and Candy Spence Ezzell and Alan T. Martinez

 

 

 

 

AN ACT

RELATING TO TAXATION; CREATING A FLAT INDIVIDUAL INCOME TAX RATE OF ONE PERCENT.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. Section 7-2-7 NMSA 1978 (being Laws 2005, Chapter 104, Section 4, as amended) is amended to read:

     "7-2-7. INDIVIDUAL INCOME TAX [RATES] RATE.--The tax imposed by Section 7-2-3 NMSA 1978 shall be [at the following rates for any taxable year beginning on or after January 1, 2021:

          A. For married individuals filing separate returns:

     If the taxable income is:       The tax shall be:

Not over $4,000                       1.7% of taxable income

Over $4,000 but not over $8,000       $68.00 plus 3.2% of excess over $4,000

Over $8,000 but not over $12,000      $196 plus 4.7% of excess over $8,000

Over $12,000 but not over $157,500    $384 plus 4.9% of excess over $12,000

Over $157,500                         $7,513.50 plus 5.9% of

                                      excess over $157,500.

          B. For heads of household, surviving spouses and married individuals filing joint returns:

     If the taxable income is:       The tax shall be:

Not over $8,000                       1.7% of taxable income

Over $8,000 but not over $16,000      $136 plus 3.2% of

                                      excess over $8,000

Over $16,000 but not over $24,000     $392 plus 4.7% of

                                      excess over $16,000

Over $24,000 but not over $315,000    $768 plus 4.9% of

                                      excess over $24,000

Over $315,000                         $15,027 plus 5.9% of

                                      excess over $315,000.

          C. For single individuals and for estates and trusts:

     If the taxable income is:       The tax shall be:

Not over $5,500                       1.7% of taxable income

Over $5,500 but not over $11,000      $93.50 plus 3.2% of

                                      excess over $5,500

Over $11,000 but not over $16,000     $269.50 plus 4.7% of

                                      excess over $11,000

Over $16,000 but not over $210,000    $504.50 plus 4.9% of

                                      excess over $16,000

Over $210,000                         $10,010.50 plus 5.9% of

                                      excess over $210,000.

          D. The tax on the sum of any lump-sum amounts included in net income is an amount equal to five multiplied by the difference between:

                (1) the amount of tax due on the taxpayer's taxable income; and

                (2) the amount of tax that would be due on an amount equal to the taxpayer's taxable income and twenty percent of the taxpayer's lump-sum amounts included in net income] one percent of taxable income."

     SECTION 2. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2024.

- 3 -