HOUSE BILL 81

56th legislature - STATE OF NEW MEXICO - first session, 2023

INTRODUCED BY

Christine Chandler and Peter Wirth

 

 

 

 

 

AN ACT

RELATING TO TAXATION; PROVIDING FOR THE INDEXING OF MODIFIED GROSS INCOME FOR PURPOSES OF DETERMINING THE AMOUNT OF 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. 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. Except as provided in [Subsection F] Subsections F and G of this section, 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 $ 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]

   $ 0 $ 1,000 $ 210   $ 280   $ 350  $ 420  $ 490 $ 560

 1,000   1,500   240     340     435    545    615   730

 1,500   2,500   240     340     435    545    615   760

 2,500   8,000   240     340     435    545    615   790

 8,000   8,500   220     335     420    535    620   790

 8,500   9,500   200     310     405    520    620   755

 9,500  11,000   185     270     365    460    550   720

11,000  12,500   155     225     295    390    480   650

12,500  14,000   140     200     255    320    395   520

14,000  15,500   125     185     240    295    340   420

15,500  18,000   115     165     200    255    310   360

18,000  19,500   110     140     180    225    270   325

19,500  21,000    95     125     155    195    240   280

21,000  22,500    85     115     150    180    200   250

22,500  25,000    85     115     150    180    200   250

25,000  26,500    80     110     130    155    185   210

26,500  28,000    70      95     125    150    165   195

28,000  29,500    60      85     115    140    150   185

29,500  32,000    55      80     110    125    140   165

32,000  33,500    45      60      85    110    125   140

33,500  35,000    40      55      70     85    110   115

35,000  36,500    25      45      55     70     85    95

36,500  39,000    15      40      45     60     70    80.

          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 as adjusted by the provisions of Subsection F of this section.

          F. For the [2022] 2024 taxable year and each subsequent taxable year, the amount of rebate shown in the table in Subsection D of this section shall be adjusted to account for inflation. The department shall make the adjustment by multiplying each amount of rebate by a fraction, the numerator of which is the consumer price index ending during the prior taxable year and the denominator of which is the consumer price index ending in tax year [2021] 2023. The result of the multiplication shall be rounded down to the nearest one dollar ($1.00), except that if the result would be an amount less than the corresponding amount for the preceding taxable year, then no adjustment shall be made.

          G. For the 2024 taxable year and each subsequent taxable year, the amount of modified gross income shown in the table in Subsection D of this section shall be adjusted to account for inflation. The department shall make the adjustment by multiplying each amount of modified gross income by a fraction, the numerator of which is the consumer price index ending during the prior taxable year and the denominator of which is the consumer price index ending in tax year 2023. The result of the multiplication shall be rounded down to the nearest one hundred dollars ($100), except that if the result would be an amount less than the corresponding amount for the preceding taxable year, then no adjustment shall be made.

          [G.] H. 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.

          [H.] I. For purposes of this section:

                (1) "consumer price index" means the consumer price index for all urban consumers published by the United States department of labor for the month ending September 30; and

                (2) "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, 2023.

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