HOUSE BILL 503

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

INTRODUCED BY

Antonio "Moe" Maestas

AN ACT

RELATING TO TAXATION; MODIFYING THE PERSONAL INCOME TAX BRACKETS AND RATES.

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] is at the following rates for [any] a taxable year beginning on or after January 1, [2008] 2018:

          A. For married individuals filing separate returns:

     If the taxable income is:       The tax [shall be] is:

Not over [$4,000] $15,000             [1.7%] 2% of taxable income

Over [$4,000] $15,000 but not         [$68.00] $300 plus [3.2%]

over [$8,000] $30,000                 3% of excess over [$4,000] $15,000

Over [$8,000] $30,000 but not         [$196] $750 plus [4.7%]

over [$12,000] $45,000                4% of excess over [$8,000] $30,000

Over [$12,000] $45,000 but not        [$384] $1,350 plus [4.9%]

over $75,000                          5% of excess over [$12,000] $75,000

Over $75,000                          $2,850 plus 6% of excess over $75,000.

          B. For heads of household, surviving spouses and married individuals filing joint returns:

     If the taxable income is:       The tax [shall be] is:

Not over [$8,000] $30,000             [1.7%] 2% of taxable income

Over [$8,000] $30,000 but not over    [$136] $600 plus [3.2%]

[$16,000] $60,000                      3% of excess over [$8,000] $30,000

Over [$16,000] $60,000 but not over   [$392] $1,500 plus [4.7%]

 [$24,000] $90,000                     4% of excess over [$16,000] $60,000

Over [$24,000] $90,000 but not        [$768] $2,700 plus [4.9%]

$150,000                              5% of excess over [$24,000] $90,000

Over $150,000                         $5,700 plus 6% of excess over $150,000.

          C. For single individuals and for estates and trusts:

     If the taxable income is:       The tax [shall be] is:

Not over [$5,500] $20,000             [1.7%] 2% of taxable income

Over [$5,500] $20,000 but not over    [$93.50] $400 plus [3.2%]

[$11,000] $40,000                     3% of excess over [$5,500] $20,000

Over [$11,000] $40,000 but not over   [$269.50] $1,000 plus [$16,000] $60,000[4.7%] 4% of excess over [$11,000] $40,000

Over [$16,000] $60,000 but not        [$504.50] $1,800 plus

but not over $100,000                 [4.9%] 5% of excess over [$16,000] $60,000

Over $100,000                         $3,800 plus 6% of excess over $100,000.

          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."

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