HOUSE BILL 44

47th legislature - STATE OF NEW MEXICO - second session, 2006

INTRODUCED BY

Ted Hobbs

AN ACT

RELATING TO TAXATION; PROVIDING FOR AN INCOME TAX EXEMPTION FOR MILITARY RETIREMENT PENSIONS RECEIVED BY PERSONS HONORABLY DISCHARGED FROM THE ARMED FORCES OF THE UNITED STATES OR THEIR SPOUSES.

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] EXEMPTION--MILITARY PENSIONS.--A military retirement pension is exempt from state income tax if the military retirement pension is received by:

          A. a person who has been honorably discharged from membership in the armed forces of the United States and has served in the armed forces of the United States continuously for ninety days; or

          B. the spouse of a person who has been honorably discharged from membership in the armed forces of the United States and has served in the armed forces of the United States continuously for ninety days."

     Section 2. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2006.

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