HOUSE BILL 117

53rd legislature - STATE OF NEW MEXICO - first session, 2017

INTRODUCED BY

Patricia Roybal Caballero

AN ACT

RELATING TO TAXATION; CREATING A PHASED-IN SUPPLEMENTAL TAX FOR HIGHER LEVELS OF INDIVIDUAL TAXABLE INCOME.

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] INDIVIDUAL INCOME TAX SUPPLEMENTAL TAX--RATES.--The tax imposed by Section 7-2-3 NMSA 1978 is increased beginning in taxable year 2018 by a supplemental tax that may be cited as the "income tax supplemental tax". The income tax supplemental tax is at the following rates:

          A. for taxable years beginning on or after January 1, 2018 and before January 1, 2019:

                (1) for married individuals filing separate returns, three-tenths percent of taxable income in excess of one hundred thousand dollars ($100,000);

                (2) for heads of households, surviving spouses and married individuals filing joint returns, three-tenths percent of taxable income in excess of one hundred fifty thousand dollars ($150,000); and

                (3) for single individuals and for estates and trusts, three-tenths percent of taxable income in excess of one hundred thousand dollars ($100,000);

          B. for taxable years beginning on or after January 1, 2019 and before January 1, 2020:

                (1) for married individuals filing separate returns, five-tenths percent of taxable income in excess of one hundred thousand dollars ($100,000);

                (2) for heads of households, surviving spouses and married individuals filing joint returns, five-tenths percent of taxable income in excess of one hundred fifty thousand dollars ($150,000); and

                (3) for single individuals and for estates and trusts, five-tenths percent of taxable income in excess of one hundred thousand dollars ($100,000);

          C. for taxable years beginning on or after January 1, 2020 and before January 1, 2021:

                (1) for married individuals filing separate returns, eight-tenths percent of taxable income in excess of one hundred thousand dollars ($100,000);

                (2) for heads of households, surviving spouses and married individuals filing joint returns, eight-tenths percent of taxable income in excess of one hundred fifty thousand dollars ($150,000); and

                (3) for single individuals and for estates and trusts, eight-tenths percent of taxable income in excess of one hundred thousand dollars ($100,000); and

          D. for taxable years beginning on or after January 1, 2021:

                (1) for married individuals filing separate returns, one percent of taxable income in excess of one hundred thousand dollars ($100,000);

                (2) for heads of households, surviving spouses and married individuals filing joint returns, one percent of taxable income in excess of one hundred fifty thousand dollars ($150,000); and

                (3) for single individuals and for estates and trusts, one percent of taxable income in excess of one hundred thousand dollars ($100,000)."

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