SENATE CORPORATIONS AND TRANSPORTATION COMMITTEE SUBSTITUTE FOR

SENATE BILL 129

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

AN ACT

RELATING TO TAXATION; CREATING AN EXEMPTION FOR ARMED FORCES RETIREES FROM THE INCOME TAX ACT.

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 RETIREE.--

          A. An armed forces retiree or an armed forces retiree's surviving spouse may claim an exemption from state income tax in an amount equal to the following percentages of the armed forces retiree's or the armed forces retiree's surviving spouse's military retirement or retainer pay:

                (1) beginning January 1, 2013, twenty-five percent;

                (2) beginning January 1, 2014, fifty percent;

                (3) beginning January 1, 2015, seventy-five percent; and

                (4) beginning January 1, 2016, one hundred percent.

          B. As used in this section, "armed forces retiree" means a former member of the armed services 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, 2013.

     SECTION 3. EFFECTIVE DATE.--The effective date of the provisions of this act is January 1, 2013.

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