HOUSE BILL 110

52nd legislature - STATE OF NEW MEXICO - first session, 2015

INTRODUCED BY

Bill McCamley

AN ACT

RELATING TO TAXATION; CREATING A NEW PERSONAL INCOME TAX BRACKET FOR HIGHER-INCOME EARNERS; REDUCING THE PERSONAL INCOME TAX RATES FOR OTHER TAXPAYERS.

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) is amended to read:

     "7-2-7. INDIVIDUAL INCOME TAX RATES.--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, [2008] 2015:

          A. For married individuals filing separate returns:

     If the taxable income is:       The tax shall be:

Not over $4,000                       [1.7%] 1.3% of taxable                                       income

Over $ 4,000 but not over $ 8,000   [$ 68.00] $52.00 plus [3.2%] 2.8% of excess over $ 4,000

Over $ 8,000 but not over $ 12,000   [$ 196] $164 plus [4.7%] 4.3% of excess over

                                      $ 8,000

Over $ 12,000 but not over $ 45,000   [$ 384] $336 plus [4.9%] 4.5% of excess over

                                      $ 12,000

Over $ 45,000                         $ 1,821 plus 5.9% of

                                      excess over $ 45,000.          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%] 1.3% of taxable                                       income

Over $ 8,000 but not over $ 16,000   [$ 136] $104 plus [3.2%]                                       2.8% of excess over

                                      $ 8,000

Over $ 16,000 but not over $ 24,000   [$ 392] $328 plus [4.7%]                                       4.3% of excess over

                                      $ 16,000

Over $ 24,000 but not over $ 90,000   [$ 768] $672 plus [4.9%] 4.5% of excess over $ 24,000

Over $ 90,000                         $ 3,642 plus 5.9% of

                                      excess over $ 90,000.

          C. For single individuals and for estates and trusts:

     If the taxable income is:       The tax shall be:

Not over $5,500                       [1.7%] 1.3% of taxable                                       income

Over $ 5,500 but not over $ 11,000   [$ 93.50] $71.50 plus                                       [3.2%] 2.8% of excess                                       over $ 5,500

Over $ 11,000 but not over $ 16,000   [$ 269.50] $225.50 plus                                       [4.7%] 4.3% of excess                                       over $ 11,000

Over $ 16,000 but not over $ 60,000   [$ 504.50] $440.50 plus [4.9%] 4.5% of excess over $ 16,000

Over $ 60,000                         $ 2,420.50 plus 5.9% of

                                      excess over $ 60,000.

          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."

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