HOUSE BILL 64
49th legislature - STATE OF NEW MEXICO - first session, 2009
INTRODUCED BY
Miguel P. Garcia
AN ACT
RELATING TO TAXATION; RESTORING PROGRESSIVITY TO INCOME TAX RATES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. 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] 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
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%] 5.3% 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%] 5.3% 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%] 5.3% of excess over $16,000.
D. For heads of households filing returns:
If the taxable income is: The tax shall be:
Not over $7,000 1.7% of taxable income
Over $7,000 but not over $14,000 $119 plus 3.2% of excess over $7,000
Over $14,000 but not over $20,000 $343 plus 4.7% of excess over $14,000
Over $20,000 $625 plus 5.3% of excess over $20,000.
[D.] E. 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 2. Section 7-2-7 NMSA 1978 (being Laws 2005, Chapter 104, Section 4, as amended by Section 1 of this act if it becomes law) is repealed and a new Section 7-2-7 NMSA 1978 is enacted to read:
"7-2-7. [NEW MATERIAL] INDIVIDUAL INCOME TAX RATES.--The tax imposed by Section 7-2-3 NMSA 1978 shall be at the following rates for a taxable year beginning in 2011:
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 6.0% of excess
over $12,000.
B. For 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 6.0% 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 6.0% of excess over $16,000.
D. For heads of household filing returns:
If the taxable income is: The tax shall be:
Not over $7,000 1.7% of taxable income
Over $7,000 but not over $14,000 $119 plus 3.2% of excess
over $7,000
Over $14,000 but not over $20,000 $343 plus 4.7% of excess
over $14,000
Over $20,000 $625 plus 6.0% of excess
over $20,000.
E. 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:
"7-2-7. [NEW MATERIAL] INDIVIDUAL INCOME TAX RATES.--The tax imposed by Section 7-2-3 NMSA 1978 shall be at the following rates for a taxable year beginning in 2012:
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 but not over $20,000 $384 plus 6.0% of excess
over $12,000
Over $20,000 $864 plus 6.8% of excess
over $20,000.
B. For 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 but not over $40,000 $768 plus 6.0% of excess
over $24,000
Over $40,000 $1,728 plus 6.8% of
excess over $40,000.
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 but not over $26,000 $504.50 plus 6.0% of
excess over $16,000
Over $26,000 $1,104.50 plus 6.8% of
excess over $26,000.
D. For heads of household filing returns:
If the taxable income is: The tax shall be:
Not over $7,000 1.7% of taxable income
Over $7,000 but not over $14,000 $119 plus 3.2% of excess
over $7,000
Over $14,000 but not over $20,000 $343 plus 4.7% of excess
over $14,000
Over $20,000 but not over $33,000 $625 plus 6.0% of excess
over $20,000
Over $33,000 $1,405 plus 6.8% of
excess over $33,000.
E. 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:
"7-2-7. [NEW MATERIAL] INDIVIDUAL INCOME TAX RATES.--The tax imposed by Section 7-2-3 NMSA 1978 shall be at the following rates for a taxable year beginning in 2013:
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 but not over $20,000 $384 plus 6.0% of excess
over $12,000
Over $20,000 but not over $32,000 $864 plus 7.1% of excess
over $20,000
Over $32,000 $1,716 plus 7.7% of
excess over $32,000.
B. For 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 but not over $40,000 $768 plus 6.0% of excess
over $24,000
Over $40,000 but not over $64,000 $1,728 plus 7.1% of
excess over $40,000
Over $64,000 $3,432 plus 7.7% of
excess over $64,000.
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 but not over $26,000 $504.50 plus 6.0% of
excess over $16,000
Over $ 26,000 but not over $42,000 $1,104.50 plus 7.1% of
excess over $26,000
Over $42,000 $2,240.50 plus 7.7% of
excess over $42,000.
D. For heads of household filing returns:
If the taxable income is: The tax shall be:
Not over $7,000 1.7% of taxable income
Over $7,000 but not over $14,000 $119 plus 3.2% of excess
over $7,000
Over $14,000 but not over $20,000 $343 plus 4.7% of excess
over $14,000
Over $20,000 but not over $33,000 $625 plus 6.0% of excess
over $20,000
Over $33,000 but not over $53,000 $1,405 plus 7.1% of
excess over $33,000
Over $53,000 $2,825 plus 7.7% of
excess over $53,000.
E. 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. Section 7-2-7 NMSA 1978 (being Section 4 of this act if it becomes law) is repealed and a new Section 7-2-7 NMSA 1978 is enacted to read:
"7-2-7. [NEW MATERIAL] INDIVIDUAL INCOME TAX RATES.--The tax imposed by Section 7-2-3 NMSA 1978 shall be at the following rates for a taxable year beginning in 2014:
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 but not over $20,000 $384 plus 6.0% of excess
over $12,000
Over $20,000 but not over $32,000 $864 plus 7.1% of excess
over $20,000
Over $32,000 but not over $50,000 $1,716 plus 7.9% of
excess over $32,000
Over $50,000 $3,138 plus 8.2% of
excess over $50,000.
B. For 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 but not over $40,000 $768 plus 6.0% of excess
over $24,000
Over $40,000 but not over $64,000 $1,728 plus 7.1% of
excess over $40,000
Over $64,000 but not over $100,000 $3,432 plus 7.9% of
excess over $64,000
Over $100,000 $6,276 plus 8.2% of
excess over $100,000.
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 but not over $26,000 $504.50 plus 6.0% of
excess over $16,000
Over $26,000 but not over $42,000 $1,104.50 plus 7.1% of
excess over $26,000
Over $42,000 but not over $65,000 $2,240.50 plus 7.9% of
excess over $42,000
Over $65,000 $4,057.50 plus 8.2% of
excess over $65,000.
D. For heads of household filing returns:
If the taxable income is: The tax shall be:
Not over $7,000 1.7% of taxable income
Over $7,000 but not over $14,000 $119 plus 3.2% of excess
over $7,000
Over $14,000 but not over $20,000 $343 plus 4.7% of excess
over $14,000
Over $20,000 but not over $33,000 $625 plus 6.0% of excess
over $20,000
Over $33,000 but not over $53,000 $1,405 plus 7.1% of
excess over $33,000
Over $53,000 but not over $83,000 $2,825 plus 7.9% of excess over $53,000
Over $83,000 $5,195 plus 8.2% of
excess over $83,000.
E. 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."
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