HOUSE BILL 130

50th legislature - STATE OF NEW MEXICO - second session, 2012

INTRODUCED BY

James R.J. Strickler

AN ACT

RELATING TO TAXATION; REDUCING CORPORATE INCOME TAX RATES; PROVIDING A THREE-YEAR PERIOD BEGINNING IN 2013 TO IMPLEMENT CORPORATE INCOME TAX RATE REDUCTIONS.

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

     SECTION 1. Section 7-2A-5 NMSA 1978 (being Laws 1981, Chapter 37, Section 38, as amended) is amended to read:

     "7-2A-5. CORPORATE INCOME TAX RATES.--The corporate income tax imposed on corporations by Section 7-2A-3 NMSA 1978 shall be at the rates specified in the following [table] subsections:

          A. for taxable years beginning prior to January 1, 2013:

    If the net income is:                 The tax shall be:

Not over $500,000                         4.8% of net income

Over $500,000 but not 

    over $1,000,000                       $24,000 plus

                                          6.4% of excess

                                          over $500,000

Over $1,000,000                           $56,000 plus

                                          7.6% of excess

                                          over $1,000,000;

         B. for taxable years beginning in calendar year 2013:

    If the net income is:                 The tax shall be:

Not over $500,000                         4.8% of net income

Over $500,000                             $24,000 plus

                                          6.7% of excess

                                          over $500,000;

         C. for taxable years beginning in calendar year 2014:

    If the net income is:                 The tax shall be:

Not over $500,000                         4.8% of net income

Over $500,000                             $24,000 plus

                                          5.8% of excess

                                          over $500,000; and

         D. for taxable years beginning on or after January 1, 2015, the tax shall be four and eight-tenths percent of net income."

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