45th legislature - STATE OF NEW MEXICO - second session, 2002

RELATING TO TAXATION; PROVIDING CERTAIN TAXPAYERS AN INCOME TAX REBATE FOR GROSS RECEIPTS TAXES ON FOOD; INCREASING THE CIGARETTE TAX RATE; MODIFYING DISTRIBUTIONS OF THE CIGARETTE TAX; AMENDING AND ENACTING SECTIONS OF THE NMSA 1978.

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:

"[NEW MATERIAL] TAX REBATE FOR GROSS RECEIPTS TAX ON FOOD--REFUND.--

A. Except as provided in Subsection B of this section, any resident who files an individual New Mexico income tax return for a taxable year beginning on or after January 1, 2002, who is not a dependent of another taxpayer, may claim a tax rebate for a portion of gross receipts taxes on food purchases to which he has been subject during the taxable year for which the return is filed. The tax rebate provided in this section may be claimed in the amount shown in the appropriate filing status table in Subsections D and E of this section for each exemption.

B. No claim for the tax rebate provided in this section shall be filed by a resident who was an inmate of a public institution for more than six months during the taxable year for which the tax rebate could be claimed or who was not physically present in New Mexico for at least six months during the taxable year for which the tax rebate could be claimed.

C. For the purposes of this section, the number of exemptions for which a tax rebate may be claimed or allowed is the total number of exemptions allowable for federal income tax purposes for the individuals included in the return who are domiciled in New Mexico.

D. For single individuals, heads of household, surviving spouses and married individuals filing joint returns, the tax rebate shall be at the following amounts based upon the modified gross income of the taxpayer:

If modified gross income is: The tax rebate per exemption

Over But Not Over shall be:

$ 0 $12,000 $ 45.00

12,000 16,000 30.00

16,000 22,000 15.00

22,000 0.

If the taxpayer's modified gross income is zero or less than zero, the tax rebate per exemption shall be forty-five dollars ($45.00).

E. For married individuals filing separate returns, the tax rebate shall be at the following amounts based upon the modified gross income of the taxpayer:

If modified gross income is: The tax rebate per exemption

Over But Not Over shall be:

$ 0 $ 6,000 $ 45.00

6,000 8,000 30.00

8,000 11,000 15.00

11,000 0.

If the taxpayer's modified gross income is zero or less than zero, the tax rebate per exemption shall be forty-five dollars ($45.00).

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

Section 2. Section 7-1-6.11 NMSA 1978 (being Laws 1983, Chapter 211, Section 16, as amended) is amended to read:

"7-1-6.11. DISTRIBUTIONS OF CIGARETTE TAXES.--

A. Except as provided in Subsection E of this section, a distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the county and municipality recreational fund in an amount equal to [four and three-quarters] two and three hundred seventy thousandths percent of the net receipts, exclusive of penalties and interest, attributable to the cigarette tax.

B. Except as provided in Subsection E of this section, a distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the county and municipal cigarette tax fund in an amount equal to [nine and one-half] four and seven hundred thirty-nine thousandths percent of the net receipts, exclusive of penalties and interest, attributable to the cigarette tax.

C. Except as provided in Subsection E of this section, a distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the cancer center at the university of New Mexico school of medicine in an amount equal to [four and three-quarters] twelve and thirty-four hundredths percent of the net receipts, exclusive of penalties and interest, attributable to the cigarette tax.

D. Except as provided in Subsection E of this section, a distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the New Mexico finance authority in an amount equal to [seven and one-eighth] three and five hundred fifty-four thousandths percent of the net receipts, exclusive of penalties and interest, attributable to the cigarette tax.

E. If the amount of distributions in any fiscal year pursuant to Subsection A, B, C or D of this section is less than the amount of the distributions made pursuant to that subsection in fiscal year 2002, the amount distributed pursuant to that subsection shall be increased by an amount sufficient to result in a total distribution for the fiscal year equal to the amount distributed in fiscal year 2002."

Section 3. Section 7-12-3 NMSA 1978 (being Laws 1971, Chapter 77, Section 3, as amended) is amended to read:

"7-12-3. EXCISE TAX ON CIGARETTES--RATES.--

A. For the privilege of selling, giving or consuming cigarettes in New Mexico, there is levied an excise tax at the rate of [one and five hundredths cents ($.0105)] two and three-tenths cents ($.023) for each cigarette sold, given or consumed in this state.

B. The tax imposed by this section shall be referred to as the "cigarette tax"."

Section 4. APPLICABILITY.--The provisions of Section 1 of this act apply to taxable years beginning on or after January 1, 2002.

Section 5. EFFECTIVE DATE.--

A. The effective date of the provisions of Section 2 of this act is August 1, 2002.

B. The effective date of the provisions of Section 3 of this act is July 1, 2002.