44th legislature - STATE OF NEW MEXICO - second session, 2000

RELATING TO TAXATION; PROVIDING TEMPORARY TAX RELIEF FOR LOW-AND MODERATE-INCOME HOUSEHOLDS; MAKING AN APPROPRIATION; DECLARING AN EMERGENCY.

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

Section 1. A new section of the Income Tax Act is enacted to read:

"[NEW MATERIAL] ONE-TIME TAX REBATE.--

A. A resident who files an individual New Mexico income tax return for the taxable year beginning in 1999 and who is not a dependent of another taxpayer is entitled to a tax rebate for a portion of gross receipts taxes paid during the taxable year. The tax rebate provided in this section shall be at the amount shown in the appropriate filing status tables in Subsections B, C and D of this section for each exemption.

B. For surviving spouses and married individuals filing joint returns, the tax rebate shall be at the following amounts per exemption based on the adjusted gross income of the taxpayer:

If the adjusted gross income is: the tax rebate per exemption is:

Not over $30,000 $50

over $30,000 but not over $35,000 $35

over $35,000 but not over $40,000 $25

over $40,000 but not over $45,000 $15

over $45,000 0.

C. For single individuals and married taxpayers filing separate returns, the tax rebate shall be at the following amounts based on the adjusted gross income of the taxpayer:

If the adjusted gross income is: the tax rebate per exemption is:

Not over $15,000 $50

over $15,000 but not over $17,500 $35

over $17,500 but not over $20,000 $25

over $20,000 but not over $22,500 $15

over $22,500 0.

D. For heads of household, the tax rebate shall be at the following amounts per exemption based on the adjusted gross income of the taxpayer:

If the adjusted gross income is: the tax rebate per exemption is:

Not over $20,000 $50

over $20,000 but not over $24,000 $35

over $24,000 but not over $28,000 $25

over $28,000 but not over $32,000 $15

over $32,000 0.

E. No resident is eligible for the tax rebate provided by this section if the resident was an inmate of a public institution for more than six months during the taxable year for which the tax rebate is provided or was not physically present in New Mexico for at least six months during the taxable year for which the tax rebate is provided.

F. The tax rebate provided for in this section may be deducted from the taxpayer's New Mexico income tax liability for the taxable year. If the tax rebate exceeds the taxpayer's income tax liability, the excess shall be refunded to the taxpayer.

G. For purposes of this section, the total number of exemptions for which a tax rebate shall be 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 and subtracting the number of allowable federal exemptions for individuals not eligible pursuant to Subsection E of this section.

H. As used in this section, "dependent" means "dependent" as defined by Section 152 of the Internal Revenue Code."

Section 2. APPROPRIATION.--One hundred thousand dollars ($100,000) is appropriated from the general fund to the taxation and revenue department for expenditure in fiscal years 2000 and 2001 to carry out the provisions of this act. Any unexpended or unencumbered balance remaining at the end of fiscal year 2001 shall revert to the general fund.

Section 3. DELAYED REPEAL.--Section 1 of this act is repealed effective January 1, 2002.

Section 4. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.