SENATE BILL 217

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

INTRODUCED BY

William E. Sharer

AN ACT

RELATING TO TAXATION; PROVIDING AN INCOME TAX EXEMPTION FOR ONE HUNDRED PERCENT OF MILITARY RETIREMENT OR RETAINER PAY.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. A new section of the Income Tax Act is enacted to read:

     "[NEW MATERIAL] EXEMPTION--ARMED FORCES RETIREMENT OR RETAINER PAY.--

          A. An individual who is an armed forces retiree, or the surviving spouse of that retiree, may claim an exemption in an amount equal to one hundred percent of military retirement or retainer pay includable, except for this exemption, in net income.

          B. As used in this section, "armed forces retiree" means a former member of the armed forces of the United States who has qualified by years of service or disability to separate from military service with lifetime benefits."

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

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