SENATE PUBLIC AFFAIRS COMMITTEE SUBSTITUTE FOR

SENATE BILL 302

53rd legislature - STATE OF NEW MEXICO - second session, 2018

 

 

 

 

 

 

 

AN ACT

RELATING TO THE PUBLIC PEACE, HEALTH, SAFETY AND WELFARE; CREATING NEW INCOME TAX BRACKETS; REPEALING AN OUTDATED VERSION OF SECTION 7-2-7 NMSA 1978 (BEING LAWS 2005 (1ST S.S.), CHAPTER 3, SECTION 2).

 

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 at the following rates for any taxable year beginning on or after January 1, [2008] 2019:

          A. For married individuals filing separate returns:

     If the taxable income is:       The tax shall be:

Not over $4,000                       1.7% of taxable income

Over $4,000 but not over $8,000       $68.00 plus 3.2% of excess over $4,000

Over $8,000 but not over $12,000      $196 plus 4.7% of    excess over $8,000

Over $12,000 but not over $90,000     $384 plus 4.9% of    excess over $12,000

Over $90,000 but not over $180,000    $4,206 plus 6.9% of

                                      excess over $90,000

Over $180,000                         $10,416 plus 7.9% of

                                      excess over $180,000.

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

     If the taxable income is:       The tax shall be:

Not over $8,000                       1.7% of taxable income

Over $8,000 but not over $16,000      $136 plus 3.2% of                                          excess over $8,000

Over $16,000 but not over $24,000     $392 plus 4.7% of                                          excess over $16,000

Over $24,000 but not over $180,000    $768 plus 4.9% of    excess over $24,000

Over $180,000 but not over $360,000   $8,412 plus 6.9% of

                                      excess over $180,000

Over $360,000                         $20,832 plus 7.9% of

                                      excess over $360,000.

          C. For single individuals and for estates and trusts:

     If the taxable income is:       The tax shall be:

Not over $5,500                       1.7% of taxable income

Over $5,500 but not over $11,000      $93.50 plus 3.2% of       excess over $5,500

Over $11,000 but not over $16,000     $269.50 plus 4.7% of excess over $11,000

Over $16,000 but not over $120,000    $504.50 plus 4.9% of excess over $16,000

Over $120,000 but not over $240,000   $5,600.50 plus 6.9% of excess over $120,000

Over $240,000                         $13,880.50 plus 7.9% of excess over $240,000.

          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."

     SECTION 2. REPEAL.--That version of Section 7-2-7 NMSA 1978 (being Laws 2005 (1st S.S.), Chapter 3, Section 2) is repealed.

     SECTION 3. EFFECTIVE DATE.--The effective date of the provisions of this act is January 1, 2019.

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