HOUSE BILL 279

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

INTRODUCED BY

James R.J. Strickler

AN ACT

RELATING TO TAXATION; INCREMENTALLY REDUCING THE CORPORATE INCOME TAX RATE AT HIGHER-INCOME LEVELS FOR FUTURE TAXABLE YEARS.

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

     SECTION 1. Section 7-2A-5 NMSA 1978 (being Laws 1981, Chapter 37, Section 38, as amended) is amended to read:

     "7-2A-5. CORPORATE INCOME TAX RATES.--The corporate income tax imposed on corporations by Section 7-2A-3 NMSA 1978 shall be at the rates specified in the following tables:

          A. For taxable years beginning prior to January 1, 2014:

    If the net income is:                The tax shall be:

Not over $500,000                        4.8% of net income

Over $500,000 but not 

    over $1,000,000                      $24,000 plus

                                         6.4% of excess

                                          over $500,000

Over $1,000,000                          $56,000

                                          plus 7.6% of excess                                          over $1,000,000.

         B. For taxable years beginning on or after January 1, 2014 and prior to January 1, 2015:

    If the net income is:                The tax shall be:

Not over $500,000                        4.8% of net income

Over $500,000 but not 

    over $1,000,000                      $24,000 plus

                                         6.4% of excess

                                         over $500,000

Over $1,000,000                          $56,000

                                         plus 7.3% of excess                                          over $1,000,000.

         C. For taxable years beginning on or after January 1, 2015 and prior to January 1, 2016:

    If the net income is:                The tax shall be:

Not over $500,000                        4.8% of net income

Over $500,000 but not 

    over $1,000,000                      $24,000 plus

                                         6.4% of excess

                                         over $500,000

Over $1,000,000                          $56,000

                                         plus 6.9% of excess                                          over $1,000,000.

         D. For taxable years beginning on or after January 1, 2016 and prior to January 1, 2017:

    If the net income is:                The tax shall be:

Not over $500,000                        4.8% of net income

Over $500,000 but not

    over $1,000,000                      $24,000 plus

                                         6.4% of excess

                                         over $500,000

Over $1,000,000                          $56,000

                                         plus 6.6% of excess

                                         over $1,000,000.

         E. For taxable years beginning on or after January 1, 2017 and prior to January 1, 2018:

    If the net income is:                The tax shall be:

Not over $500,000                        4.8% of net income

Over $500,000                            $24,000 plus

                                         [6.2%] 5.4% of excess                                         over $500,000.

         F. For taxable years beginning on or after January 1, 2018:

    If the net income is:                The tax shall be:

Not over $500,000                        4.8% of net income

Over $500,000                            $24,000 plus

                                         [5.9%] 4.9% of excess

                                         over $500,000."

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