SENATE BILL 9

49th legislature - STATE OF NEW MEXICO - first special session, 2009

INTRODUCED BY

Linda M. Lopez

 

 

 

 

 

AN ACT

RELATING TO REVENUE; RETURNING INCOME TAX RATES TO RATES IMPOSED PRIOR TO 2004; DECLARING AN EMERGENCY.

 

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 but not over $20,000    $ 384 plus 4.9% 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 [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 but not over $ 40,000 $ 768 plus [4.9%] 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 [4.9%] 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.

          [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. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2010.

     Section 3. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.

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