45th legislature - STATE OF NEW MEXICO - first session, 2001
RELATING TO TAXATION; AMENDING THE INCOME TAX ACT TO PHASE IN A DEDUCTION FOR ALL NET CAPITAL GAIN INCOME.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 7-2-34 NMSA 1978 (being Laws 1999, Chapter 205, Section 1) is amended to read:
"7-2-34. DEDUCTION--NET CAPITAL GAIN INCOME.--
A. Except as provided in Subsection [B] C of this
section, a taxpayer may claim a deduction from net income in
an amount equal to the following amounts of the taxpayer's net
capital gain income for the taxable year for which the
deduction is being claimed [but not to exceed one thousand
dollars ($1,000)]:
(1) one-third for taxable years beginning in 2001;
(2) two-thirds for taxable years beginning in 2002; and
(3) all net capital gain income for taxable years beginning on or after January 1, 2003.
B. A husband and wife 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 deduction provided by this section that would have been allowed on the joint return.
[B.] C. A taxpayer may not claim the deduction
provided in Subsection A of this section if the taxpayer has
claimed the credit provided in Section 7-2D-8.1 NMSA 1978.
[C.] D. As used in this section, "net capital
gain" means "net capital gain" as defined in Section 1222 (11)
of the Internal Revenue Code."
Section 2. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2001.