HOUSE BILL 12
48th legislature - STATE OF NEW MEXICO - second special session, 2008
INTRODUCED BY
Daniel R. Foley
AN ACT
RELATING TO TAXATION; ELIMINATING THE PERSONAL INCOME TAX BY JANUARY 1, 2012; REPEALING THE INCOME TAX ACT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 7-2-3 NMSA 1978 (being Laws 1965, Chapter 202, Section 3, as amended) is amended to read:
"7-2-3. IMPOSITION AND LEVY OF TAX.--Prior to January 1, 2012, a tax is imposed at the rates specified in the Income Tax Act upon the net income of every resident individual and upon the net income of every nonresident individual employed or engaged in the transaction of business in, into or from this state or deriving any income from any property or employment within this state."
Section 2. Section 7-2-7 NMSA 1978 (being Laws 2005, Chapter 104, Section 4) is amended to read:
"7-2-7. INDIVIDUAL INCOME TAX RATES.--The tax imposed by Section 7-2-3 NMSA 1978 shall be at the following rates for any taxable year beginning on or after January 1, [2008] 2009:
A. For married individuals filing separate returns:
If the taxable income is: The tax shall be:
Not over $4,000 1.7% of taxable income
Over $ 4,000 but not over $ 8,000 $ 68.00 plus 3.2% of excess over $ 4,000
Over $ 8,000 [but not over $ 12,000] $ 196 plus 4.7% of excess over $ 8,000
[Over $ 12,000] [$ 384 plus 4.9% of excess over $ 12,000].
B. For heads of household, surviving spouses and married individuals filing joint returns:
If the taxable income is: The tax shall be:
Not over $8,000 1.7% of taxable income
Over $ 8,000 but not over $ 16,000 $ 136 plus 3.2% of excess over $ 8,000
Over $ 16,000 [but not over $ 24,000] $ 392 plus 4.7% of excess over $ 16,000
[Over $ 24,000] [$ 768 plus 4.9% of excess over $ 24,000].
C. For single individuals and for estates and trusts:
If the taxable income is: The tax shall be:
Not over $5,500 1.7% of taxable income
Over $ 5,500 but not over $ 11,000 $ 93.50 plus 3.2% of excess over $ 5,500
Over $ 11,000 [but not over $ 16,000] $ 269.50 plus 4.7% of excess over $ 11,000
[Over $ 16,000] [$ 504.50 plus 4.9% of excess over $ 16,000].
D. The tax on the sum of any lump-sum amounts included in net income is an amount equal to five multiplied by the difference between:
(1) the amount of tax due on the taxpayer's taxable income; and
(2) the amount of tax that would be due on an amount equal to the taxpayer's taxable income and twenty percent of the taxpayer's lump-sum amounts included in net income."
Section 3. Section 7-2-7 NMSA 1978 (being Section 2 of this act if it becomes law) is repealed and a new Section 7-2-7 NMSA 1978 is enacted to read:
"[NEW MATERIAL] INDIVIDUAL INCOME TAX RATES.--The tax imposed by Section 7-2-3 NMSA 1978 shall be at the following rates for any taxable year beginning on or after January 1, 2010:
A. For married individuals filing separate returns:
If the taxable income is: The tax shall be:
Not over $ 4,000 1.7% of taxable income; and
Over $ 4,000 $ 68.00 plus 3.2% of excess over $ 4,000.
B. For heads of household, surviving spouses and married individuals filing joint returns:
If the taxable income is: The tax shall be:
Not over $ 8,000 1.7% of taxable income; and
Over $ 8,000 $ 136 plus 3.2% of excess
over $ 8,000.
C. For single individuals and for estates and trusts:
If the taxable income is: The tax shall be:
Not over $5,500 1.7% of taxable income; and
Over $ 5,500 $ 93.50 plus 3.2% of excess over $ 5,500.
D. The tax on the sum of any lump-sum amounts included in net income is an amount equal to five multiplied by the difference between:
(1) the amount of tax due on the taxpayer's taxable income; and
(2) the amount of tax that would be due on an amount equal to the taxpayer's taxable income and twenty percent of the taxpayer's lump-sum amounts included in net income."
Section 4. Section 7-2-7 NMSA 1978 (being Section 3 of this act if it becomes law) is repealed and a new Section 7-2-7 NMSA 1978 is enacted to read:
"[NEW MATERIAL] INDIVIDUAL INCOME TAX RATES.--
A. The tax imposed by Section 7-2-3 NMSA 1978 shall be one and seven-tenths percent of taxable income for any taxable year beginning on or after January 1, 2011 for married individuals filing separately, heads of households, surviving spouses, married individuals filing joint returns, single individuals and for estates and trusts.
B. The tax on the sum of any lump-sum amounts included in net income is an amount equal to five multiplied by the difference between:
(1) the amount of tax due on the taxpayer's taxable income; and
(2) the amount of tax that would be due on an amount equal to the taxpayer's taxable income and twenty percent of the taxpayer's lump-sum amounts included in net income."
Section 5. DELAYED REPEAL.--Sections 7-2-1 through 7-2-36
NMSA 1978 (being Laws 1965, Chapter 202, Section 1, Laws 1986, Chapter 20, Section 26, Laws 1965, Chapter 202, Sections 3 and 4, Laws 1985, Chapter 114, Section 1, Laws 1995, Chapter 42, Section 1, Laws 1995, Chapter 93, Section 8, Laws 2002, Chapter 58, Section 1, Laws 2005, Chapter 104, Sections 5 and 6, Laws 2006, Chapter 50, Section 1, Laws 2007, Chapter 45, Section 11, Laws 1980, Chapter 102, Section 1, Laws 2005 (1st S.S.), Chapter 3, Sections 3 and 4, Laws 1965, Chapter 202, Sections 7 through 10, Laws 1990, Chapter 23, Section 1, Laws 1996, Chapter 17, Section 1, Laws 1965, Chapter 202, Section 11, Laws 1972, Chapter 20, Section 2, Laws 1994, Chapter 111, Sections 1 through 3, Laws 1977, Chapter 196, Section 1, Laws 1981, Chapter 170, Section 1, Laws 1984, Chapter 34, Section 1, Laws 1994, Chapter 115, Section 1, Laws 1998, Chapter 92, Section 2, Laws 2000, Chapter 64, Section 1 and Laws 2000, Chapter 78, Section 1, Laws 2001, Chapter 73, Section 1, Laws 2003, Chapter 331, Section 7, Laws 2005, Chapter 267, Section 1, Laws 2006, Chapter 93, Section 1, Laws 2007, Chapter 45, Sections 9 and 10, Laws 2007, Chapter 172, Section 1, Laws 2007, Chapter 204, Sections 2 and 3, Laws 2007, Chapter 204, Section 5, Laws 2007, Chapter 204, Section 7, Laws 2007, Chapter 361, Section 2, Laws 1965, Chapter 202, Sections 13 and 14, Laws 1981, Chapter 37, Section 32, Laws 1965, Chapter 202, Section 18, Laws 1981, Chapter 343, Sections 1 and 2, Laws 1992, Chapter 108, Section 4, Laws 1987, Chapter 257, Sections 2 and 3, Laws 1987, Chapter 265, Sections 1 and 2, Laws 2005, Chapter 56, Section 2, Laws 2005, Chapter 87, Section 2, Laws 2005, Chapter 220, Section 2, Laws 1992, Chapter 108, Section 1, Laws 1999, Chapter 47, Section 5, Laws 1997, Chapter 259, Section 8, Laws 1999, Chapter 205, Section 1, Laws 2000 (2nd S.S.), Chapter 7, Section 1 and Laws 2005, Chapter 113, Section 1, as amended or repealed and reenacted) are repealed effective January 1, 2012.
Section 6. EFFECTIVE DATES.--
A. The effective date of the provisions of Sections 1 and 2 of this act is January 1, 2009.
B. The effective date of the provisions of Section 3 of this act is January 1, 2010.
C. The effective date of the provisions of Section 4 of this act is January 1, 2011.
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