Senate Bill text for SB0526

RELATING TO TAXATION; PROVIDING A ONE-TIME CREDIT FOR A NEW MEXICO TAXPAYER BASED ON THE NUMBER OF PERSONAL EXCEPTIONS; MAKING AN APPROPRIATION; DECLARING AN EMERGENCY.

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 may claim a one-time credit during the 2008 taxable year in an amount pursuant to Subsection C of this section. The credit provided in this section may be referred to as the "New Mexico taxpayer credit".

B. For the purposes of this section, the total number of exemptions for which a tax credit 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. Except as otherwise provided in Subsection D of this section, the tax credit provided for in this section is allowed for the amount shown in the following table:

Over	But not over	1	2	3	4	5	6 or more
$0	$10,000	$56	$88	$108	$120	$133	$140
10,000	20,000	52	80	101	112	119	123
20,000	35,000	49	73	91	98	102	106
35,000	45,000	46	67	81	88	91	95
45,000	60,000	28	39	46	49	52	55
60,000		24	32	39	40	42	45.

D. If a resident's adjusted gross income is less than or equal to zero, the resident is entitled to a credit in the amount shown in the first row of the table appropriate for the resident's number of exemptions.

E. Except as otherwise provided in this section, the secretary shall make a payment of the tax credit provided for in this section not later than December 15, 2008 to each resident who filed a 2007 New Mexico personal income tax return. Payment amounts shall be based on the number of federal exemptions allowable for federal income tax purposes on the 2007 New Mexico personal income tax return of the resident for whom a credit is allowed pursuant to this section and on the federal adjusted gross income reported by that resident on the same return. A resident who does not receive a payment may claim the tax credit provided for in this section on that resident's 2008 New Mexico personal income tax return based on the federal adjusted gross income and on the number of federal exemptions allowable for federal income tax purposes reported on that return.

F. The department shall not make a payment of the tax credit provided for in this section to a person who:

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

G. The department shall not allow a tax credit provided in this section to a person who claims the credit on that person's 2008 personal income tax return, but:

(1) was an inmate of a public institution for more than six months during the 2008 taxable year; or

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

I. For purposes of this section, "dependent" means "dependent" as defined by Section 152 of the Internal Revenue Code."

Section 2. APPROPRIATION.--Five hundred thousand dollars ($500,000) is appropriated from the general fund to the taxation and revenue department for expenditure in fiscal years 2008 through 2010 to administer the tax credit provided for in Section 1 of this 2008 act. Any unexpended or unencumbered balance remaining at the end of fiscal year 2010 shall revert to the general fund.

Section 3. APPLICABILITY.--The provisions of this act apply to the taxable year beginning on January 1, 2008 and ending on December 31, 2008.

Section 4. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.