45th legislature - STATE OF NEW MEXICO - first session, 2001

REQUESTING THE SECRETARY OF TAXATION AND REVENUE TO INCLUDE FILING INFORMATION ABOUT THE FEDERAL EARNED INCOME TAX CREDIT FORMS AND WORKSHEETS IN MAILINGS OF NEW MEXICO STATE PERSONAL INCOME TAX FORMS OR WHEN DISTRIBUTING LOW-INCOME COMPREHENSIVE TAX REBATE FORMS OR INFORMATION TO NEW MEXICO RESIDENTS.

WHEREAS, New Mexico offers a low-income comprehensive tax rebate to low-income residents of the state who are not claimed as dependents by another taxpayer, regardless of whether they have taxable income; and

WHEREAS, the low-income comprehensive tax rebate is one tool to provide tax relief to low-income families or to help the families most in need in New Mexico; and

WHEREAS, the federal government offers the earned income tax credit to low-income families with children, and the total national credit is approximately thirty billion dollars ($30,000,000,000) per year; and

WHEREAS, of that amount, New Mexico residents claim three million dollars ($3,000,000) annually in federal earned income tax credits; and

WHEREAS, the maximum low-income comprehensive tax rebate available from the state is for a family claiming six dependents or more, with a modified gross income from two thousand dollars ($2,000) to five thousand dollars ($5,000) and is a rebate of four hundred fifty dollars ($450); and

WHEREAS, the maximum federal earned income tax credit available can be claimed by a family with at least two dependent children, with a family adjusted gross income of between nine thousand seven hundred dollars ($9,700) and twelve thousand seven hundred dollars ($12,700) and is a credit of three thousand eight hundred eighty-eight dollars ($3,888); and

WHEREAS, the federal earned income tax credit is available for families with children, and a family with two or more children can have an adjusted gross income up to thirty-one thousand one hundred fifty-two dollars ($31,152) annually; and

WHEREAS, it is important to maximize the use of the federal earned income tax credit by low-income families in New Mexico, so that New Mexico families that are at the lower end of the income scale receive the greatest benefit possible from our federal income tax laws;

NOW, THEREFORE, BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO that the secretary of taxation and revenue be requested to put clear, step-by-step information about applying for the federal earned income tax credit into mailings of state income tax returns or in materials provided to people requesting state low-income comprehensive tax rebate forms, so that those families who are eligible for both the low-income comprehensive tax rebate and the federal earned income tax credit will file for both programs, and those who are eligible for a federal earned income tax credit but not for a low-income comprehensive tax rebate will be encouraged to file for the federal earned income tax credit; and

BE IT FURTHER RESOLVED that a copy of this memorial be transmitted to the secretary of taxation and revenue.