SENATE BILL 56

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

INTRODUCED BY

Bill B. O'Neill

 

 

 

 

 

AN ACT

RELATING TO TAXATION; ADDING A NEW PERSONAL INCOME TAX BRACKET.

 

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

     SECTION 1. That version of Section 7-2-7 NMSA 1978 (being Laws 2005, Chapter 104, Section 4, as amended by Laws 2019, Chapter 270, Section 12) that is to take effect on or before February 19, 2021 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, [2021] 2022:

          A. For married individuals filing separate returns:

     If the taxable income is:       The tax shall be:

Not over $4,000                       1.7% of taxable income

Over $4,000 but not over $8,000       $68.00 plus 3.2% of excess over $4,000

Over $8,000 but not over $12,000      $196 plus 4.7% of excess over $8,000

Over $12,000 but not over $157,500    $384 plus 4.9% of excess over $12,000

Over $157,500 but not over $187,500   $7,513.50 plus 5.9% of

                                      excess over $157,500

Over $187,500                         $9,283.50 plus 8.2% of

                                      excess over $187,500.

          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% of taxable income

Over $8,000 but not over $16,000      $136 plus 3.2% of excess                                      over $8,000

Over $16,000 but not over $24,000     $392 plus 4.7% of excess                                      over $16,000

Over $24,000 but not over $315,000    $768 plus 4.9% of excess

                                      over $24,000

Over $315,000 but not over $375,000   $15,027 plus 5.9% of

                                      excess over $315,000

Over $375,000                         $18,567 plus 8.2% of

                                      excess over $375,000.

          C. For single individuals and for estates and trusts:

     If the taxable income is:       The tax shall be:

Not over $5,500                       1.7% of taxable income

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

Over $11,000 but not over $16,000     $269.50 plus 4.7% of                                       excess over $11,000

Over $16,000 but not over $210,000    $504.50 plus 4.9% of excess over $16,000

Over $210,000 but not over $250,000   $10,010.50 plus 5.9% of

                                      excess over $210,000

Over $250,000                         $12,370.50 plus 8.2% of

                                      excess over $250,000.

          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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