SENATE BILL 85

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

INTRODUCED BY

Gregg Schmedes

 

 

 

 

 

AN ACT

RELATING TO TAXATION; ADJUSTING INCOME TAX BRACKETS.

 

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] 2023:

          [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.] A. 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] $11,000               1.7% of taxable income

Over [$8,000] $11,000 but not           [$136] $187 plus 3.2%

over [$16,000] $22,000                  of excess over

                                        [$8,000] $11,000

Over [$16,000] $22,000 but not          [$392] $539 plus 4.7%

over [$24,000] $32,000                  of excess over

                                        [$16,000] $22,000

Over [$24,000] $32,000 but not          [$768] $1,009 plus

over [$315,000] $420,000                4.9% of excess over

                                        [$24,000] $32,000

Over [$315,000] $420,000                [$15,027] $20,021 plus

                                        5.9% of excess over

                                        [$315,000] $420,000.

          [C.] B. For single individuals, married individuals filing separately 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.

          [D.] C. 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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