SENATE BILL 812

48th legislature - STATE OF NEW MEXICO - first session, 2007

INTRODUCED BY

Timothy Z. Jennings

AN ACT

RELATING TO TAXATION; PROVIDING A REBATE FOR A PORTION OF TAXES IMPOSED FOR THE 2007 TAXABLE YEAR; PROVIDING AN EXEMPTION FROM INCOME TAX FOR THE 2007 TAXABLE YEAR REBATE; DECLARING AN EMERGENCY.

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--2007 TAXABLE YEAR.--

          A. Except as otherwise provided in this section, any 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 2007 taxable year for a portion of state and local taxes to which the person has been subject during the 2007 taxable year, even if the resident has no income taxable pursuant to the Income Tax Act.

          B. For the purposes of this section, the total number of exemptions for which a tax rebate may be claimed or allowed is determined by adding the number of federal exemptions allowable for federal income tax purposes for each individual; provided that, in the case of a husband and wife who have filed a joint return where only one individual is a New Mexico resident, the number of exemptions shall be reduced by one.

          C. The tax rebate provided for in this section is allowed in the amount of one hundred thirty-eight dollars ($138) for each exemption allowed pursuant to Subsection F of this section.

          D. The secretary shall make an advance payment of the tax rebate provided for in this section not later than June 30, 2007 to each resident who meets the requirements of Subsection A of this section and who files a 2006 New Mexico income tax return by April 16, 2007.

          E. If a resident who meets the requirements of Subsection A of this section does not receive an advance payment as provided in Subsection D of this section because the resident has not filed a 2006 New Mexico income tax return by April 16, 2007, but the resident subsequently files a 2006 New Mexico income tax return, the secretary shall make an advance payment of the tax rebate provided for in this section not later than ninety days after the return is filed.

          F. Advance payment amounts shall be based on the number of federal exemptions allowable for federal income tax purposes on the 2006 New Mexico income tax return of the resident for whom a rebate is allowed pursuant to this section.

          G. A resident who meets the requirements of Subsection A of this section but does not receive an advance payment pursuant to Subsection D or F of this section may claim the tax rebate provided in this section on that resident's 2007 New Mexico income tax return based on the number of federal exemptions allowable for federal income tax purposes reported on that return.

          H. The department shall not make an advance payment of the tax rebate provided for in this section to a person who:

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

                (2) was not a resident of New Mexico on the last day of the 2006 taxable year.

          I. The department shall not allow a tax rebate provided in this section to a person who claims the rebate on that person's 2007 New Mexico income tax return if that person:

                (1) was an inmate of a public institution for more than six months during the 2007 taxable year; or

                (2) was not a resident of New Mexico on the last day of the 2007 taxable year.

          J. The secretary may adopt regulations necessary to administer the provisions of this section.

          K. For 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. A new section of the Income Tax Act is enacted to read:

     "[NEW MATERIAL] EXEMPTION--2007 TAXABLE YEAR REBATE.--The tax rebate made for the 2007 taxable year is exempt from state income tax."

      Section 3. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.

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