SENATE BILL 504

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

INTRODUCED BY

Joseph J. Carraro

AN ACT

RELATING TO TAXATION; PROVIDING FOR A STATE INCOME TAX EXEMPTION FOR MILITARY RETIREMENT PENSIONS RECEIVED BY VETERANS OF 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 RETIREMENT PENSIONS.--A military retirement pension is exempt from state income tax if the 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 on active duty 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, 2009.

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