RELATING TO TAXATION; PROVIDING A ONE-TIME INCOME TAX REBATE OF PROPERTY TAX PAID ON PROPERTY ELIGIBLE FOR THE DISABLED VETERAN EXEMPTION AUTHORIZED BY ARTICLE 8, SECTION 15 OF THE CONSTITUTION OF NEW MEXICO.

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

Section 1. A new section of the Income Tax Act is enacted to read:

"TAX REBATE OF PROPERTY TAX PAID ON PROPERTY ELIGIBLE FOR DISABLED VETERAN EXEMPTION--REFUND--LIMITATION.--

A. Any resident who files an individual New Mexico income tax return and paid property tax for the 1999 property tax year on property eligible for the property tax exemption authorized by Article 8, Section 15 of the constitution of New Mexico may claim a tax rebate for the amount of property tax paid.

B. The tax rebate provided for in this section may be deducted from the taxpayer's New Mexico income tax liability for taxable year 2000. If the tax rebate exceeds the taxpayer's income tax liability, the excess shall be refunded to the taxpayer.

C. The rebate provided for in this section may be claimed only on a return filed for taxable year 2000.

D. A husband and wife who file separate returns for taxable year 2000 and could have filed a joint return for taxable year 2000 may each claim only one-half of the tax rebate that would have been allowed on the joint return."

Section 2. APPLICABILITY.--The provisions of this act apply to the 2000 taxable year.

HB 278

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