SENATE BILL 475

48th legislature - STATE OF NEW MEXICO - second session, 2008

INTRODUCED BY

Dede Feldman

AN ACT

RELATING TO TAXATION; PROVIDING A TAX CREDIT FOR PERSONAL INCOME TAXES PAID BY A NEW MEXICO RESIDENT INDIVIDUAL TO A FOREIGN COUNTRY.

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

     Section 1. Section 7-2-13 NMSA 1978 (being Laws 1965, Chapter 202, Section 11, as amended) is amended to read:

     "7-2-13. CREDIT FOR TAXES PAID OTHER STATES BY RESIDENT INDIVIDUALS.--When a resident individual is liable to another state or foreign country for tax upon income derived from sources outside this state but also included in net income under the Income Tax Act as income allocated or apportioned to New Mexico pursuant to Section 7-2-11 NMSA 1978, the individual, upon filing with the secretary satisfactory evidence of the payment of the tax to the other state or foreign country, shall receive a credit against the tax due this state in the amount of the tax paid the other state or foreign country with respect to income that is required to be either allocated or apportioned to New Mexico. However, in no case shall the credit exceed five and one-half percent of income that is required to be either allocated or apportioned to New Mexico on which the tax payable to the other state or foreign country was determined. The credit provided by this section does not apply to or include income taxes paid to any municipality, county or other political subdivision of a state."

     Section 2. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2008.

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