45th legislature - STATE OF NEW MEXICO - second session, 2002
RELATING TO TAXATION; AMENDING THE INCOME TAX ACT TO CHANGE THE CERTIFICATION DATE FOR PROPERTY TAX REBATE FOR LOW-INCOME TAXPAYERS AND ADD A SPECIFICATION FOR A COUNTY RESOLUTION ON ELDERLY HOMEOWNERS' PROPERTY TAX REBATE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 7-2-14.3 NMSA 1978 (being Laws 1994, Chapter 111, Section 1, as amended) is amended to read:
"7-2-14.3. TAX REBATE OF PART OF PROPERTY TAX DUE FROM LOW-INCOME TAXPAYER--LOCAL OPTION--REFUND.--
A. The tax rebate provided by this section may be claimed for the taxable year for which the return is filed by an individual who:
(1) has his principal place of residence in a county that has adopted an ordinance pursuant to Subsection G of this section;
(2) is not a dependent of another individual;
(3) files a return; and
(4) incurred a property tax liability on his principal place of residence in the taxable year.
B. The tax rebate provided by this section shall be allowed for any individual eligible to claim the refund pursuant to Subsection A of this section and who:
(1) was not an inmate of a public institution for more than six months during the taxable year;
(2) was physically present in New Mexico for at least six months during the taxable year for which the rebate is claimed; and
(3) is eligible for the rebate as a low-income property taxpayer in accordance with the provisions of Subsection D of this section.
C. A husband and wife who file separate returns for the taxable year in which they could have filed a joint return may each claim only one-half of the tax rebate that would have been allowed on the joint return.
D. As used in the table in this subsection, "property tax liability" means the amount of property tax resulting from the imposition of the county and municipal property tax operating impositions on the net taxable value of the taxpayer's principal place of residence calculated for the year for which the rebate is claimed. The tax rebate provided in this section is as specified in the following table:
LOW-INCOME TAXPAYER'S PROPERTY TAX REBATE TABLE
Taxpayer's Modified Gross Income Property Tax Rebate But Not
Over Over
$0 $8,000 75% of property tax liability
8,000 10,000 70% of property tax liability
10,000 12,000 65% of property tax liability
12,000 14,000 60% of property tax liability
14,000 16,000 55% of property tax liability
16,000 18,000 50% of property tax liability
18,000 20,000 45% of property tax liability
20,000 22,000 40% of property tax liability
22,000 24,000 35% of property tax liability.
E. If a taxpayer's modified gross income is zero, the taxpayer may claim a tax rebate in the amount shown in the first row of the table. The tax rebate provided for in this section shall not exceed three hundred fifty dollars ($350) per return and, if a return is filed separately that could have been filed jointly, the tax rebate shall not exceed one hundred seventy-five dollars ($175). No tax rebate shall be allowed any taxpayer whose modified gross income exceeds twenty-four thousand dollars ($24,000).
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. In January of every odd-numbered year in which a county does not have in effect an ordinance adopted pursuant to this subsection, the board of county commissioners of the county shall conduct a public hearing on the question of whether the property tax rebate provided in this section benefiting low-income property taxpayers in the county should be made available through adoption of a county ordinance. Notice of the public hearing shall be published once at least two weeks prior to the hearing date in at least one newspaper of general circulation in the county and broadcast at some time within the week before the hearing on at least one radio station with substantial broadcasting coverage in the county. At the public hearing, the board shall take action on the question and if a majority of the members elected votes to adopt an ordinance, it shall be adopted no later than thirty days after the public hearing.
H. An ordinance adopted pursuant to Subsection G
of this section shall specify the [first] taxable [year] years
to which it is applicable. The board of county commissioners
adopting an ordinance shall notify the department of the
adoption of the ordinance and furnish a copy of the ordinance
to the department no later than September 1 of the first
taxable year to which the ordinance applies.
I. No later than [July 1] December 31 of the year
immediately following the first year in which the low-income
taxpayer property tax rebate provided in the Income Tax Act is
in effect for a county, and no later than [July 1] December 31
of each year thereafter in which the tax rebate is in effect,
the department shall certify to the county the amount of the
loss of income tax revenue to the state for the previous
taxable year attributable to the allowance of property tax
rebates to taxpayers of that county. The county shall
promptly pay the amount certified to the department. If a
county fails to pay the amount certified within thirty days of
the date of certification, the department may enforce
collection of the amount by action against the county and may
withhold from any revenue distribution to the county, not
dedicated or pledged, amounts up to the amount certified.
J. As used in this section, "principal place of residence" means the dwelling owned and occupied by the taxpayer and so much of the land surrounding it, not to exceed five acres, as is reasonably necessary for use of the dwelling as a home and may consist of a part of a multidwelling or a multipurpose building and a part of the land upon which it is built."
Section 2. Section 7-2-18 NMSA 1978 (being Laws 1977, Chapter 196, Section 1, as amended) is amended to read:
"7-2-18. TAX REBATE OF PROPERTY TAX DUE THAT EXCEEDS THE ELDERLY TAXPAYER'S MAXIMUM PROPERTY TAX LIABILITY--REFUND.--
A. Any resident who has attained the age of sixty-five and files an individual New Mexico income tax return and is not a dependent of another individual may claim a tax rebate for the taxable year for which the return is filed. The tax rebate shall be the amount of property tax due on the resident's principal place of residence for the taxable year that exceeds the property tax liability indicated by the table in Subsection F or G, as appropriate, of this section, based upon the taxpayer's modified gross income.
B. Any resident otherwise qualified under this section who rents a principal place of residence from another person may calculate the amount of property tax due by multiplying the gross rent for the taxable year by six percent. The tax rebate shall be the amount of property tax due on the taxpayer's principal place of residence for the taxable year that exceeds the property tax liability indicated by the table in Subsection F or G, as appropriate, of this section, based upon the taxpayer's modified gross income.
C. As used in this section, "principal place of residence" means the resident's dwelling, whether owned or rented, and so much of the land surrounding it, not to exceed five acres, as is reasonably necessary for use of the dwelling as a home and may consist of a part of a multidwelling or a multipurpose building and a part of the land upon which it is built.
D. No claim for the tax rebate provided in this section shall be allowed a resident who was an inmate of a public institution for more than six months during the taxable year 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. 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 tax rebate that would have been allowed on a joint return.
F. For taxpayers whose principal place of residence is in a county that does not have in effect for the taxable year a resolution in accordance with Subsection J of this section, the tax rebate provided for in this section may be claimed in the amount of the property tax due each taxable year that exceeds the amount shown as property tax liability in the following table:
ELDERLY HOMEOWNERS' MAXIMUM PROPERTY TAX LIABILITY TABLE
Property Tax
Taxpayer's Modified Gross Income Liability
But Not
Over Over
$0 $1,000 $20
1,000 2,000 25
2,000 3,000 30
3,000 4,000 35
4,000 5,000 40
5,000 6,000 45
6,000 7,000 50
7,000 8,000 55
8,000 9,000 60
9,000 10,000 75
10,000 11,000 90
11,000 12,000 105
12,000 13,000 120
13,000 14,000 135
14,000 15,000 150
15,000 16,000 180.
G. For taxpayers whose principal place of residence is in a county that has in effect for the taxable year a resolution in accordance with Subsection J of this section, the tax rebate provided for in this section may be claimed in the amount of the property tax due each taxable year that exceeds the amount shown as property tax liability in the following table:
ELDERLY HOMEOWNERS' MAXIMUM PROPERTY TAX LIABILITY TABLE
Property Tax
Taxpayer's Modified Gross Income Liability
But Not
Over Over
$0 $1,000 $20
1,000 2,000 25
2,000 3,000 30
3,000 4,000 35
4,000 5,000 40
5,000 6,000 45
6,000 7,000 50
7,000 8,000 55
8,000 9,000 60
9,000 10,000 75
10,000 11,000 90
11,000 12,000 105
12,000 13,000 120
13,000 14,000 135
14,000 15,000 150
15,000 16,000 165
16,000 17,000 180
17,000 18,000 195
18,000 19,000 210
19,000 20,000 225
20,000 21,000 240
21,000 22,000 255
22,000 23,000 270
23,000 24,000 285
24,000 25,000 300.
H. If a taxpayer's modified gross income is zero, the taxpayer may claim a tax rebate based upon the amount shown in the first row of the appropriate table. The tax rebate provided for in this section shall not exceed two hundred fifty dollars ($250) per return, and, if a return is filed separately that could have been filed jointly, the tax rebate shall not exceed one hundred twenty-five dollars ($125). No tax rebate shall be allowed any taxpayer whose modified gross income exceeds sixteen thousand dollars ($16,000) for taxpayers whose principal place of residence is in a county that does not have in effect for the taxable year a resolution in accordance with Subsection J of this section and twenty-five thousand dollars ($25,000) for all other taxpayers.
I. 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.
J. The board of county commissioners may adopt a resolution authorizing otherwise qualified taxpayers whose principal place of residence is in the county to claim the rebate provided by this section in the amounts set forth in Subsection G of this section. The resolution must also provide that the county will reimburse the state for the additional amount of tax rebates paid to such taxpayers over the amount that would have been paid to such taxpayers under Subsection F of this section. The resolution may apply to one or more taxable years and should contain language specifying the period of time for which the rebate provided by this section may be claimed by qualified taxpayers. The county must adopt the resolution and notify the department of the adoption by no later than September 1 of the taxable year to which the resolution first applies. The department shall determine the additional amounts paid to taxpayers of the county for each taxable year and shall bill the county for the amount at the time and in the manner determined by the department. If the county fails to pay any bill within thirty days, the department may deduct the amount due from any amount to be transferred or distributed to the county by the state, other than debt interceptions."
Section 3. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2002.