HOUSE BILL 42

55th legislature - STATE OF NEW MEXICO - first session, 2021

INTRODUCED BY

Christine Chandler and Candie G. Sweetser

AN ACT

RELATING TO TAXATION; AMENDING THE LOW-INCOME COMPREHENSIVE TAX REBATE.

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] Married individuals 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]

   $ 0 $ 1,000 $ 195   $ 260   $ 325  $ 390  $ 455 $ 520

 1,000   1,500   220     315     405    505    570   675

 1,500   2,500   220     315     405    505    570   705

 2,500   7,500   220     315     405    505    570   730

 7,500   8,000   205     310     390    495    575   730

 8,000   9,000   185     285     375    480    575   700

 9,000  10,000   170     250     340    425    510   665

10,000  11,500   145     210     275    360    445   600

11,500  13,000   130     185     235    295    365   480

13,000  14,500   115     170     220    275    315   390

14,500  16,500   105     155     185    235    285   335

16,500  18,000   100     130     165    210    250   300

18,000  19,500    90     115     145    180    220   260

19,500  21,000    80     105     140    165    185   230

21,000  23,000    80     105     140    165    185   230

23,000  24,500    75     100     120    145    170   195

24,500  26,000    65      90     115    140    155   180

26,000  27,500    55      80     105    130    140   170

27,500  29,500    50      75     100    115    130   155

29,500  31,000    40      55      80    100    115   130

31,000  32,500    35      50      65     80    100   105

32,500  34,000    25      40      50     65     80    90

34,000  36,000    15      35      40     55     65    75.

          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."

     SECTION 2. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2021.