SENATE BILL 449

48th legislature - STATE OF NEW MEXICO - second session, 2008

INTRODUCED BY

Mark Boitano

AN ACT

RELATING TO TAXATION; EXPANDING ELIGIBILITY FOR THE LOCAL OPTION LOW-INCOME PROPERTY TAX REBATE PURSUANT TO THE INCOME TAX ACT.

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

     Section 1. Section 7-2-14.3 NMSA 1978 (being Laws 1994, Chapter 111, Section 1, as amended) is amended to read:

     "7-2-14.3. TAX REBATE OF PART OF PROPERTY TAX DUE FROM

LOW-INCOME TAXPAYER--LOCAL OPTION--REFUND.--

         A. The tax rebate provided by this section may be claimed for the taxable year for which the return is filed by [an individual who] a taxpayer:

             (1) [has his] whose principal place of residence is in a county that has adopted an ordinance pursuant to Subsection G of this section;

             (2) who is not a dependent of another individual;

             (3) who files a return; and

             (4) who incurred a property tax liability on [his] the taxpayer's principal place of residence in the taxable year.

         B. The tax rebate provided by this section shall be allowed for any individual eligible to claim the refund pursuant to Subsection A of this section and who:

             (1) was not an inmate of a public institution for more than six months during the taxable year;

             (2) was physically present in New Mexico for at least six months during the taxable year for which the rebate is claimed; and

             (3) is eligible for the rebate as a low-income property taxpayer in accordance with the provisions of Subsection D of this section.

         C. A husband and wife who file separate returns for the 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 the joint return.

         D. As used in the table in this subsection, "property tax liability" means the amount of property tax resulting from the imposition of the county and municipal property tax operating impositions on the net taxable value of the taxpayer's principal place of residence calculated for the year for which the rebate is claimed. The tax rebate provided in this section is as specified in the following table:

      LOW-INCOME TAXPAYER'S PROPERTY TAX REBATE TABLE

Taxpayer's Modified Gross Income    Property Tax Rebate          But Not

Over  Over

$ 0        $ 8,000           75% of property tax liability

 8,000          10,000           70% of property tax liability

10,000         12,000           65% of property tax liability

12,000         14,000           60% of property tax liability

14,000         16,000           55% of property tax liability

16,000         18,000           50% of property tax liability

18,000         20,000           45% of property tax liability

20,000         22,000           40% of property tax liability

22,000         24,000           35% of property tax liability

24,000         26,000           30% of property tax liability

26,000         28,000           25% of property tax liability

28,000         30,000           20% of property tax liability

30,000         32,000           10% of property tax liability

32,000 or more                   0% of property tax liability.

         E. If a taxpayer's modified gross income is zero, the taxpayer may claim a tax rebate in the amount shown in the first row of the table. The tax rebate provided for in this section shall not exceed three hundred fifty dollars ($350) per return and, if a return is filed separately that could have been filed jointly, the tax rebate shall not exceed one hundred seventy-five dollars ($175). No tax rebate shall be allowed any taxpayer whose modified gross income exceeds [twenty-four thousand dollars ($24,000)] thirty-two thousand dollars ($32,000).

         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.

         G. In January of every odd-numbered year in which a county does not have in effect an ordinance adopted pursuant to this subsection, the board of county commissioners of the county shall conduct a public hearing on the question of whether the property tax rebate provided in this section benefiting low-income property taxpayers in the county should be made available through adoption of a county ordinance. Notice of the public hearing shall be published once at least two weeks prior to the hearing date in at least one newspaper of general circulation in the county and broadcast at some time within the week before the hearing on at least one radio station with substantial broadcasting coverage in the county. At the public hearing, the board shall take action on the question, and if a majority of the members elected votes to adopt an ordinance, it shall be adopted no later than thirty days after the public hearing.

         H. An ordinance adopted pursuant to Subsection G of this section shall specify the taxable years to which it is applicable. The board of county commissioners adopting an ordinance shall notify the department of the adoption of the ordinance and furnish a copy of the ordinance to the department no later than September 1 of the first taxable year to which the ordinance applies.

         I. No later than December 31 of the year immediately following the first year in which the low-income taxpayer property tax rebate provided in the Income Tax Act is in effect for a county, and no later than December 31 of each year thereafter in which the tax rebate is in effect, the department shall certify to the county the amount of the loss of income tax revenue to the state for the previous taxable year attributable to the allowance of property tax rebates to taxpayers of that county. The county shall promptly pay the amount certified to the department. If a county fails to pay the amount certified within thirty days of the date of certification, the department may enforce collection of the amount by action against the county and may withhold from any revenue distribution to the county, not dedicated or pledged, amounts up to the amount certified.

         J. As used in this section, "principal place of residence" means the dwelling owned and occupied by the taxpayer and so much of the land surrounding it, not to exceed five acres, as is reasonably necessary for use of the dwelling as a home and may consist of a part of a multidwelling or a multipurpose building and a part of the land upon which it is built."

    Section 2. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2008.

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