SENATE BILL 760

48th legislature - STATE OF NEW MEXICO - first session, 2007

INTRODUCED BY

Shannon Robinson

AN ACT

RELATING TO TAXATION; AMENDING SECTION 7-2-14 NMSA 1978 (BEING LAWS 1972, CHAPTER 20, SECTION 2, AS AMENDED) TO PROVIDE FOR A PORTION OF A TAX REBATE TO BE APPLIED TO MOTOR VEHICLE INSURANCE.

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

     Section 1. Section 7-2-14 NMSA 1978 (being Laws 1972, Chapter 20, Section 2, as amended) is amended to read:

     "7-2-14. LOW-INCOME COMPREHENSIVE TAX REBATE.--

          A. Except as otherwise provided in Subsection B of this section, any resident who files an individual New Mexico income tax return and who is not a dependent of another individual may claim a tax rebate for a portion of state and local taxes to which the resident has been subject during the taxable year for which the return is filed. The tax rebate may be claimed even though the resident has no income taxable under the Income Tax Act. A husband and wife who file separate returns for a taxable year in which they could have filed a joint return may each claim only one-half of the tax rebate that would have been allowed on a joint return.

          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 total number of exemptions for which a tax rebate may be claimed or allowed is determined by adding the number of federal exemptions allowable for federal income tax purposes for each individual included in the return who is domiciled in New Mexico plus two additional exemptions for each individual domiciled in New Mexico included in the return who is sixty-five years of age or older plus one additional exemption for each individual domiciled in New Mexico included in the return who, for federal income tax purposes, is blind plus one exemption for each minor child or stepchild of the resident who would be a dependent for federal income tax purposes if the public assistance contributing to the support of the child or stepchild was considered to have been contributed by the resident.

          D. The tax rebate provided for in this section may be claimed in the amount shown in the following table:

Modified gross And the total number

income is: of exemptions is:

         But Not 6 or

Over Over 1 2 3 4 5 More

$ 0   $ 500  $ 120 $ 160 $ 200 $ 240 $ 280 $ 320

   500     1,000     135    195     250     310    350    415

 1,000     1,500     135    195     250     310    350    435

 1,500     2,000     135    195     250     310    350    450

 2,000     2,500     135    195     250     310    350    450

 2,500     3,000     135    195     250     310    350    450

 3,000     3,500     135    195     250     310    350    450

 3,500     4,000     135    195     250     310    355    450

 4,000     4,500     135    195     250     310    355    450

 4,500     5,000     125    190     240     305    355    450

 5,000     5,500     115    175     230     295    355    430

 5,500     6,000     105    155     210     260    315    410

 6,000     7,000      90    130     170     220    275    370

 7,000     8,000      80    115     145     180    225    295

 8,000     9,000      70    105     135     170    195    240

 9,000    10,000      65     95     115     145    175    205

10,000   11,000      60     80     100     130    155    185

11,000   12,000      55     70      90     110    135    160

12,000   13,000      50     65      85     100    115    140

13,000   14,000      50     65      85     100    115    140

14,000   15,000      45     60      75      90    105    120

15,000   16,000      40     55      70      85     95    110

16,000   17,000      35     50      65      80     85    105

17,000   18,000      30     45      60      70     80     95

18,000   19,000      25     35      50      60     70     80

19,000   20,000      20     30      40      50     60     65

20,000   21,000      15     25      30      40     50     55

21,000   22,000      10     20      25      35     40     45.

         E. If a taxpayer's modified gross income is zero, the taxpayer may claim a credit in the amount shown in the first row of the table appropriate for the taxpayer's number of exemptions.

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

         G. For purposes of this section, "dependent" means "dependent" as defined by Section 152 of the Internal Revenue Code of 1986, as that section may be amended or renumbered, but also includes any minor child or stepchild of the resident who would be a dependent for federal income tax purposes if the public assistance contributing to the support of the child or stepchild was considered to have been contributed by the resident.

         H. A resident who qualifies for a tax rebate pursuant to this section may apply for a portion of the rebate to be applied to the cost of basic motor vehicle insurance up to fifty percent of the premium cost. The department shall adopt rules for the administration of this application of the rebate, including for proof of insurance and direct payment from the rebate to the insurer."

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