45th legislature - STATE OF NEW MEXICO - second session, 2002

RELATING TO TAXATION; PROVIDING AN INCOME TAX REBATE FOR GROSS RECEIPTS TAXES ON FOOD FOR CERTAIN RESIDENT TAXPAYERS.

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] TAX REBATE FOR GROSS RECEIPTS TAX ON FOOD--REFUND.--

A. Except as provided in Subsection D of this section, any resident who files an individual New Mexico income tax return for a taxable year beginning on or after January 1, 2002, who is not a dependent of another taxpayer, may claim a tax rebate for a portion of gross receipts taxes on food purchases to which he has been subject during the taxable year for which the return is filed. The tax rebate provided in this section may be claimed in the amount shown in the appropriate filing status table in Subsections B and C of this section for each exemption.

B. For heads of household, surviving spouses and married individuals filing joint returns, the tax rebate shall be at the following amounts based upon the modified gross income of the taxpayer:

If modified gross income is: The tax rebate per exemption

Over But Not Over shall be:

$ 0 $12,000 $ 45.00

12,000 16,000 30.00

16,000 22,000 15.00

22,000 0.

If the taxpayer's modified gross income is zero or less than zero, the tax rebate per exemption shall be forty-five dollars ($45.00).

C. For married individuals filing separate returns, the tax rebate shall be at the following amounts based upon the modified gross income of the taxpayer:

If modified gross income is: The tax rebate per exemption

Over But Not Over shall be:

$ 0 $ 6,000 $ 45.00

6,000 8,000 30.00

8,000 11,000 15.00

11,000 0.

If the taxpayer's modified gross income is zero or less than zero, the tax rebate per exemption shall be forty-five dollars ($45.00).

D. No claim for the tax rebate provided in this section shall be filed by a resident who was an inmate of a public institution for more than six months during the taxable year for which the tax rebate could be claimed or who was not physically present in New Mexico for at least six months during the taxable year for which the tax rebate could be claimed.

E. 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.

F. For the purpose of this section, the number of exemptions for which a tax rebate may be claimed or allowed is determined by adding the number of exemptions allowable for federal income tax purposes for each individual included in the return who is domiciled in New Mexico."

Section 2. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2002.