HOUSE BILL 247

54th legislature - STATE OF NEW MEXICO - first session, 2019

INTRODUCED BY

Christine Chandler

AN ACT

RELATING TO TAXATION; INCREASING CORPORATE INCOME TAX RATES.

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.] A. For taxable years beginning on or after January 1, [2017] 2020 and prior to January 1, [2018] 2021:

     If the net income is:           The tax shall be:

Not over $500,000                     4.8% of net income

Over $500,000 but not                 $24,000 plus

     over $1,000,000                 [6.2%] 6.4% of excess                                      over $500,000

Over $1,000,000                       $56,000 plus 6.9% of                                       excess over $1,000,000.

          [F.] B. For taxable years beginning on or after January 1, [2018] 2021:

     If the net income is:           The tax shall be:

Not over $500,000                     4.8% of net income

Over $500,000 but not                 $24,000 plus

     over $1,000,000                 [5.9%] 6.4% of excess

                                      over $500,000

Over $1,000,000                       $56,000 plus 7.6% of

                                      excess over $1,000,000."

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