SENATE BILL 288

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

INTRODUCED BY

John C. Ryan

AN ACT

RELATING TO THE STATE FISC; PROVIDING FOR A PERSONAL INCOME TAX REBATE; TRANSFERING MONEY FROM THE GENERAL FUND TO THE SEVERANCE TAX PERMANENT FUND.

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--2006 TAXABLE YEAR.--

          A. Except as otherwise provided in this section, a resident who files an individual New Mexico income tax return and who is not a dependent of another individual is entitled to a tax rebate during the 2006 taxable year for a portion of state and local taxes to which the resident has been subject during the 2006 taxable year, even if the resident has no income taxable to the Income Tax Act. The tax rebate shall be the amount determined by the department in accordance with the Tax Administration Act as the taxpayer's proportional share of one hundred eighty-nine million four hundred thirty thousand dollars ($189,430,000) of the assets in the general fund on June 30, 2006.

          B. The department shall not allow a tax rebate provided in this section to a person who claims the rebate on that person's 2006 individual New Mexico income tax return, but was:

                (1) an inmate of a public institution for more than six months during the 2006 taxable year; or

                (2) not a resident of New Mexico for six months or more during the 2006 taxable year.

          C. For the purposes of this section, "dependent" means "dependent" as defined by Section 152 of the Internal Revenue Code, but also includes any minor child or stepchild of the resident who would be a dependent for federal income tax purposes if the public assistance contributing to the support of the child or stepchild was considered to have been contributed by the resident."

     Section 2. GENERAL FUND TRANSFER TO SEVERANCE TAX PERMANENT FUND.--One hundred eighty-nine million four hundred thirty thousand dollars ($189,430,000) of the general fund remaining at the end of fiscal year 2006 shall be transferred to the severance tax permanent fund.