SENATE BILL 469

47th legislature - STATE OF NEW MEXICO - first session, 2005

INTRODUCED BY

Linda M. Lopez

AN ACT

RELATING TO TAXATION; ELIMINATING INCOME TAX RATE REDUCTIONS FOR THE 2006 AND 2007 TAXABLE YEARS.

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

     Section 1. Section 7-2-7 NMSA 1978 (being Laws 2003, Chapter 2, Section 4) 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 [in] on or after January 1, 2005:

          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                         $ 384 plus 6.0% of  excess over $ 12,000.

          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                         $ 768 plus 6.0% of  excess over $ 24,000.

          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                         $ 504.50 plus 6.0% of excess over $ 16,000.

          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                         $ 625 plus 6.0% of

                                      excess over $ 20,000.

          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. REPEALS.--

          A. Laws 2003, Chapter 2, Section 5 is repealed.

          B. Laws 2003, Chapter 2, Section 6 is repealed.

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