0001| SENATE BILL 14 | 0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997 | 0003| INTRODUCED BY | 0004| PHILLIP J. MALOOF | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| AN ACT | 0011| RELATING TO TAXATION; INCREASING THE PRESCRIPTION DRUG TAX | 0012| CREDIT FOR PERSONS AGE SIXTY-FIVE OR OLDER. | 0013| | 0014| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0015| Section 1. Section 7-2-18.3 NMSA 1978 (being Laws 1994, | 0016| Chapter 5, Section 17) is amended to read: | 0017| "7-2-18.3. CREDIT--PRESCRIPTION DRUGS.-- | 0018| A. Except as otherwise provided in Subsection ~~[E]~~ | 0019| H of this section, any resident who files an individual New | 0020| Mexico income tax return and who is not a dependent of another | 0021| individual may claim a credit for state and local gross | 0022| receipts taxes imposed on the receipts from the sale of | 0023| prescription drugs to the resident in New Mexico. | 0024| B. Subject to the limit in Subsection D of this | 0025| section, the amount of the credit that may be claimed pursuant | 0001| to this section by a taxpayer under sixty-five years of age | 0002| shall be three percent of the taxpayer's actual unreimbursed | 0003| expenditures for prescription drugs purchased in New Mexico | 0004| during the taxable year for which the return is filed. ~~[but]~~ | 0005| C. Subject to the limit in Subsection D of this | 0006| section, the amount of the credit that may be claimed pursuant | 0007| to this section by a taxpayer sixty-five years of age or older | 0008| shall be five percent of the taxpayer's actual unreimbursed | 0009| expenditures for prescription drugs purchased in New Mexico | 0010| during the taxable year for which the return is filed. | 0011| D. If all individuals included in the return are | 0012| under sixty-five years of age, the amount of the credit | 0013| claimed shall not exceed one hundred fifty dollars ($150) per | 0014| exemption allowable for federal income tax purposes for each | 0015| individual included in the return or three hundred dollars | 0016| ($300) per return, whichever is less. If any individual | 0017| included in the return is sixty-five years of age or older, the | 0018| amount of credit claimed shall not exceed two hundred fifty | 0019| dollars ($250) per exemption allowable for federal income tax | 0020| purposes for each individual included in the return or five | 0021| hundred dollars ($500) per return, whichever is less. | 0022| E. As used in ~~[this subsection]~~ Subsections B | 0023| and C of this section, the term "drugs purchased in New | 0024| Mexico" excludes drugs purchased from any out-of-state source | 0025| unless the New Mexico compensating tax has been paid on the | 0001| purchase. | 0002| ~~[C.]~~ F. The credit provided under this section | 0003| may be deducted from the taxpayer's New Mexico income tax | 0004| liability for the taxable year. If the credit exceeds the | 0005| taxpayer's income tax liability for the taxable year, the | 0006| excess shall be refunded to the taxpayer. | 0007| ~~[D.]~~ G. A husband and wife who file separate | 0008| returns for a taxable year in which they could have filed a | 0009| joint return may each claim only one-half of the credit | 0010| provided under this section that would have been allowed on a | 0011| joint return. | 0012| ~~[E.]~~ H. No claim for the credit provided under | 0013| this section shall be filed by a resident who was an inmate of | 0014| a public institution for more than six months during the | 0015| taxable year for which the credit could be claimed or who was | 0016| not physically present in New Mexico for at least six months | 0017| during the taxable year for which the credit could be claimed. | 0018| ~~[F.]~~ I. As used in this section: | 0019| (1) "dependent" means "dependent" as defined | 0020| by Section 152 of the Internal Revenue Code, but also includes | 0021| a minor child or stepchild of the resident who would be a | 0022| dependent for federal income tax purposes if the public | 0023| assistance contributing to the support of the child or | 0024| stepchild was considered to have been contributed by the | 0025| resident; and | 0001| (2) "prescription drugs" means insulin and | 0002| substances that are: | 0003| (a) dispensed by or under the | 0004| supervision of a licensed pharmacist or other person authorized | 0005| under state law to dispense the substance; | 0006| (b) prescribed for a specified | 0007| individual by a person authorized under state law to prescribe | 0008| the substance; and | 0009| (c) subject to the restrictions on sale | 0010| contained in 21 U.S.C. 353(b)(1)." | 0011| | 0012| | 0013| | 0014| FORTY-THIRD LEGISLATURE | 0015| FIRST SESSION, 1997 SB 14/a | 0016| | 0017| | 0018| January 31, 1997 | 0019| | 0020| Mr. President: | 0021| | 0022| Your WAYS AND MEANS COMMITTEE, to whom has been | 0023| referred | 0024| | 0025| SENATE BILL 14 | 0001| | 0002| has had it under consideration and reports same with | 0003| recommendation that it DO PASS, amended as follows: | 0004| | 0005| 1. On page 1, line 12, before the period insert "; SETTING | 0006| AN INCOME LIMITATION ON PERSONS ELIGIBLE FOR THE CREDIT". | 0007| | 0008| 2. On page 1, line 18, after "in" strike the remainder of | 0009| the line and insert in lieu thereof "Subsections H and I". | 0010| | 0011| 3. On page 3, between lines 15 and 16, insert the following | 0012| new subsection: | 0013| | 0014| "I. No resident may claim the credit provided in this | 0015| section if the resident: | 0016| | 0017| (1) files as a single person or head of household | 0018| and has an adjusted gross income for the taxable year for which | 0019| the credit is being claimed that exceeds forty thousand dollars | 0020| ($40,000); | 0021| | 0022| (2) is married filing jointly and the resident's | 0023| adjusted gross income for the taxable year for which the credit | 0024| is being claimed exceeds sixty thousand dollars ($60,000); or | 0025| | 0001| (3) is married filing a separate return for a | 0002| taxable year in which the resident could have filed a joint | 0003| return and the combined adjusted gross income of the resident and | 0004| the resident's spouse for the taxable year for which the credit | 0005| is being claimed exceeds sixty thousand dollars ($60,000).". | 0006| | 0007| 4. Reletter the succeeding subsection accordingly. | 0008| | 0009| | 0010| | 0011| | 0012| | 0013| | 0014| | 0015| and thence referred to the FINANCE COMMITTEE. | 0016| | 0017| Respectfully submitted, | 0018| | 0019| | 0020| | 0021| | 0022| __________________________________ | 0023| Richard M. Romero, Vice Chairman | 0024| | 0025| | 0001| | 0002| Adopted_______________________ Not | 0003| Adopted_______________________ | 0004| (Chief Clerk) (Chief Clerk) | 0005| | 0006| | 0007| Date ________________________ | 0008| | 0009| | 0010| The roll call vote was 5 For 0 Against | 0011| Yes: 5 | 0012| No: 0 | 0013| Excused: Duran, Kidd, McSorley, Nava | 0014| Absent: None | 0015| | 0016| | 0017| | 0018| | 0019| | 0020| S0014WM1 .115499.1 |