HOUSE BILL 119

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

INTRODUCED BY

Christine Chandler and Benny Shendo, Jr. and Peter Wirth

and Derrick J. Lente

 

 

 

 

AN ACT

RELATING TO TAXATION; AMENDING INCOME TAX BRACKETS PURSUANT TO THE INCOME TAX ACT.

 

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

     SECTION 1. Section 7-2-7 NMSA 1978 (being Laws 2005, Chapter 104, Section 4, as amended) 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] 2024:

          [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                         $7,513.50 plus 5.9% of

                                      excess over $157,500.

          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                         $15,027 plus 5.9% of

                                      excess over $315,000.

          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                         $10,010.50 plus 5.9% of

                                      excess over $210,000.]

          A. For married individuals filing joint returns, heads of household and surviving spouses:

     For taxable income:             The tax shall be:

Not over $8,000                       1.5% of taxable income

Over $8,000 but not over $25,000      $120 plus 3.2% of excess                                      over $8,000

Over $25,000 but not over $50,000     $664 plus 4.3% of excess                                      over $25,000

Over $50,000 but not over $100,000    $1,739 plus 4.7% of                                        excess over $50,000

Over $100,000 but not over $200,000   $4,089 plus 5.5% of                                        excess over $100,000

Over $200,000 but not over $500,000   $9,589 plus 6.5% of                                        excess over $200,000

Over $500,000                         $29,089 plus 6.9% of

                                      excess over $500,000.

          B. For single individuals and for estates and trusts:

     For taxable income:             The tax shall be:

Not over $5,500                       1.5% of taxable income

Over $5,500 but not over $16,500      $82.50 plus 3.2% of                                        excess over $5,500

Over $16,500 but not over $33,500     $434.50 plus 4.3% of

                                      excess over $16,500

Over $33,500 but not over $66,500     $1,165.50 plus 4.7% of                                      excess over $33,500

Over $66,500 but not over $133,500    $2,716.50 plus 5.5% of                                      excess over $66,500

Over $133,500 but not over $333,500   $6,401.50 plus 6.5% of                                      excess over $133,500

Over $333,500                         $19,401.50 plus 6.9% of                                      excess over $333,500.

          C. For married individuals filing separate returns:

     For taxable income:             The tax shall be:

Not over $4,000                       1.5% of taxable income

Over $4,000 but not over $12,500      $60.00 plus 3.2% of                                        excess over $4,000

Over $12,500 but not over $25,000     $332 plus 4.3% of excess                                      over $12,500

Over $25,000 but not over $50,000     $869.50 plus 4.7% of

                                      excess over $25,000

Over $50,000 but not over $100,000    $2,044.50 plus 5.5% of                                      excess over $50,000

Over $100,000 but not over $250,000   $4,794.50 plus 6.5% of                                      excess over $100,000

Over $250,000                         $14,544.50 plus 6.9% 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."

     SECTION 2. EFFECTIVE DATE.--The effective date of the provisions of this act is January 1, 2024.

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