HOUSE BILL 516

50th legislature - STATE OF NEW MEXICO - first session, 2011

INTRODUCED BY

Antonio "Moe" Maestas

AN ACT

RELATING TO TAXATION; ADJUSTING THE RATES OF INCOME TAX PAID PURSUANT TO THE INCOME TAX ACT.

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] 2012:

          A. For married individuals filing separate returns:

     If the taxable income is:       The tax shall be:

Not over [$4,000] $9,000              [1.7%] 1.0% of taxable                                       income

Over [$ 4,000] $9,000 but not

over [$ 8,000] $18,000               [$ 68.00] $90.00 plus                                       [3.2%] 2.0% of excess

                                      over [$ 4,000] $9,000

Over [$ 8,000] $18,000 but not

over [$ 12,000] $36,000               [$ 196] $270 plus [4.7%]           3.0% of excess over

                                      [$ 8,000] $18,000

Over [$ 12,000] $36,000 but not

over $72,000                          [$ 384] $810 plus [4.9%] 4.0% of excess over

                                      [$ 12,000] $36,000

Over $72,000 but not over $187,500    $ 2,250 plus 5.0% of

                                      excess over $ 72,000

Over $187,500 but not over $750,000   $ 8,025 plus 6.0% of

                                      excess over $ 187,500

Over $750,000                         $ 41,775 plus 7.0% of

                                      excess over $750,000.

          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] $18,000             [1.7%] 1.0% of taxable                                       income

Over [$ 8,000] $18,000 but not

over [$ 16,000] $36,000               [$ 136] $180 plus [3.2%]                                       2.0% of excess over

                                      [$ 8,000] $18,000

Over [$ 16,000] $36,000 but

not over [$ 24,000] $72,000           [$ 392] $540 plus [4.7%]                                       3.0% of excess over

                                      [$ 16,000] $36,000

Over [$ 24,000] $72,000 but not

over $144,000                         [$ 768] $1,620 plus [4.9%] 4.0% of excess over [$ 24,000] $72,000

Over $144,000 but not over $375,000   $ 4,500 plus 5.0% of

                                      excess over $ 144,000

Over $375,000 but not over $1,500,000 $ 16,050 plus 6.0% of

                                      excess over $ 375,000

Over $1,500,000                       $ 83,550 plus 7.0% of

                                      excess over $ 1,500,000.

          C. For single individuals and for estates and trusts:

     If the taxable income is:       The tax shall be:

Not over [$5,500] $12,000             [1.7%] 1.0% of taxable                                       income

Over [$ 5,500] 12,000 but not        [$ 93.50] $120 plus

over [$ 11,000] $24,000               [3.2%] 2.0% of excess

                                      over [$ 5,500] $12,000

Over [$ 11,000] $24,000 but not

over [$ 16,000] $48,000               [$ 269.50] $360 plus                                       [4.7%] 3.0% of excess                                       over [$ 11,000] $24,000

Over [$ 16,000] $48,000 but not       [$ 504.50] $1,080 plus

over $96,000                          [4.9%] 4.0% of excess over [$ 16,000] $48,000

Over $96,000 but not over $250,000    $ 3,000 plus 5.0% of

                                      excess over $96,000

Over $250,000 but not over $1,000,000 $ 10,700 plus 6.0% of

                                      excess over $250,000

Over $1,000,000                       $ 55,700 plus 7.0% of

                                      excess over $1,000,000.

          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 2. APPLICABILITY.--The provisions of Section 1 of this act apply to taxable years beginning on or after January 1, 2012.

     SECTION 3. EFFECTIVE DATE.--The effective date of the provisions of this act is January 1, 2012.

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