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

RELATING TO TAXATION; REDUCING PERSONAL INCOME TAX RATES.

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

Section 1. Section 7-2-7 NMSA 1978 (being Laws 1994, Chapter 5, Section 20, as amended) is amended to read:

"7-2-7. INDIVIDUAL INCOME TAX RATES.--The tax imposed by Section 7-2-3 NMSA 1978 shall be at the following rates for any taxable year beginning on or after January 1, [1998] 2002:

A. For married individuals filing separate returns:

If the taxable income is: The tax shall be:

[Not over $4,000 1.7% of taxable income

Over $ 4,000 but not over $ 8,000 $ 68.00 plus 3.2% of excess over $ 4,000

Over $ 8,000 but not over $ 12,000 $ 196 plus 4.7% of excess over $ 8,000

Over $ 12,000 but not over $ 20,000 $ 384 plus 6.0% of excess over $ 12,000

Over $ 20,000 but not over $ 32,000 $ 864 plus 7.1% of excess over $ 20,000

Over $ 32,000 but not over $ 50,000 $ 1,716 plus 7.9% of excess over $ 32,000

Over $ 50,000 $ 3,138 plus 8.2% of excess over $ 50,000.]

Not over $4,000 1.65% of taxable income

Over $ 4,000 but not over $ 8,000 $ 66.00 plus 3.1% of excess over $ 4,000

Over $ 8,000 but not over $ 12,000 $ 190 plus 4.6% of excess over $ 8,000

Over $ 12,000 but not over $ 20,000 $ 374 plus 5.8% of excess over $ 12,000

Over $ 20,000 but not over $ 32,000 $ 838 plus 6.9% of excess over $ 20,000

Over $ 32,000 but not over $ 50,000 $ 1,666 plus 7.7% of excess over $ 32,000

Over $ 50,000 $ 3,052 plus 7.9% of excess over $ 50,000.

B. For surviving spouses and married individuals filing joint returns:

If the taxable income is: The tax shall be:

[Not over $8,000 1.7% of taxable income

Over $ 8,000 but not over $ 16,000 $ 136 plus 3.2% of excess over $ 8,000

Over $ 16,000 but not over $ 24,000 $ 392 plus 4.7% of excess over $ 16,000

Over $ 24,000 but not over $ 40,000 $ 768 plus 6.0% of excess over $ 24,000

Over $ 40,000 but not over $ 64,000 $ 1,728 plus 7.1% of excess over $ 40,000

Over $ 64,000 but not over $100,000 $ 3,432 plus 7.9% of excess over $ 64,000

Over $100,000 $ 6,276 plus 8.2% of

excess over $100,000.]

Not over $8,000 1.65% of taxable income

Over $ 8,000 but not over $ 16,000 $ 132 plus 3.1% of excess over $ 8,000

Over $ 16,000 but not over $ 24,000 $ 380 plus 4.6% of excess over $ 16,000

Over $ 24,000 but not over $ 40,000 $ 748 plus 5.8% of excess over $ 24,000

Over $ 40,000 but not over $ 64,000 $ 1,676 plus 6.9% of excess over $ 40,000

Over $ 64,000 but not over $100,000 $ 3,332 plus 7.7% of excess over $ 64,000

Over $100,000 $ 6,104 plus 7.9% of excess over $100,000.

C. For single individuals and for estates and trusts:

If the taxable income is: The tax shall be:

[Not over $5,500 1.7% of taxable income

Over $ 5,500 but not over $ 11,000 $ 93.50 plus 3.2% of excess over $ 5,500

Over $ 11,000 but not over $ 16,000 $ 269.50 plus 4.7% of excess over $ 11,000

Over $ 16,000 but not over $ 26,000 $ 504.50 plus 6.0% of excess over $ 16,000

Over $ 26,000 but not over $ 42,000 $1,104.50 plus 7.1% of excess over $ 26,000

Over $ 42,000 but not over $ 65,000 $2,240.50 plus 7.9% of excess over $ 42,000

Over $ 65,000 $4,057.50 plus 8.2% of

excess over $ 65,000.]

Not over $5,500 1.65% of taxable income

Over $ 5,500 but not over $ 11,000 $ 90.75 plus 3.1% of excess over $ 5,500

Over $ 11,000 but not over $ 16,000 $ 261.25 plus 4.6% of excess over $ 11,000

Over $ 16,000 but not over $ 26,000 $ 491.25 plus 5.8% of excess over $ 16,000

Over $ 26,000 but not over $ 42,000 $1,071.25 plus 6.9% of excess over $ 26,000

Over $ 42,000 but not over $ 65,000 $2,175.25 plus 7.7% of excess over $ 42,000

Over $ 65,000 $3,946.25 plus 7.9% of excess over $ 65,000.

D. For heads of household filing returns:

If the taxable income is: The tax shall be:

[Not over $7,000 1.7% of taxable income

Over $ 7,000 but not over $ 14,000 $ 119 plus 3.2% of

excess over $ 7,000

Over $ 14,000 but not over $ 20,000 $ 343 plus 4.7% of

excess over $ 14,000

Over $ 20,000 but not over $ 33,000 $ 625 plus 6.0% of

excess over $ 20,000

Over $ 33,000 but not over $ 53,000 $1,405 plus 7.1% of

excess over $ 33,000

Over $ 53,000 but not over $ 83,000 $2,825 plus 7.9% of

excess over $ 53,000

Over $ 83,000 $5,195 plus 8.2% of excess over $ 83,000.]

Not over $7,000 1.65% of taxable income

Over $ 7,000 but not over $ 14,000 $ 115.50 plus 3.1% of

excess over $ 7,000

Over $ 14,000 but not over $ 20,000 $ 332.50 plus 4.6% of

excess over $ 14,000

Over $ 20,000 but not over $ 33,000 $ 608.50 plus 5.8% of

excess over $ 20,000

Over $ 33,000 but not over $ 53,000 $1,362.50 plus 6.9% of

excess over $ 33,000

Over $ 53,000 but not over $ 83,000 $2,742.50 plus 7.7% of

excess over $ 53,000

Over $ 83,000 $5,052.50 plus 7.9% of

excess over $ 83,000.

E. The tax on the sum of any lump-sum amounts included in net income is an amount equal to five multiplied by the difference between:

(1) the amount of tax due on the taxpayer's taxable income; and

(2) the amount of tax that would be due on an amount equal to the taxpayer's taxable income and twenty percent of the taxpayer's lump-sum amounts included in net income."

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