HOUSE BILL 365
54th legislature - STATE OF NEW MEXICO - first session, 2019
INTRODUCED BY
Miguel P. Garcia
AN ACT
RELATING TO TAXATION; MODIFYING THE PERSONAL INCOME TAX BRACKETS AND RATES; INCREASING THE LOW-INCOME COMPREHENSIVE TAX REBATE; REPEALING AN OUTDATED VERSION OF SECTION 7-2-7 NMSA 1978 (BEING LAWS 2005 (1ST S.S.), CHAPTER 3, SECTION 2).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] 2020:
A. For married individuals filing separate returns:
If the taxable income is: The tax shall be:
Not over [$4,000] $5,500 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 $384 plus 4.9% of
excess over $12,000]
Over $5,500 but not over $11,000 $94.00 plus 3.2% of
excess over $5,500
Over $11,000 but not over $16,000 $270 plus 4.7% of
excess over $11,000
Over $16,000 but not over $36,000 $505 plus 4.9% of
excess over $16,000
Over $36,000 but not over $56,000 $1,485 plus 5.5% of
excess over $36,000
Over $56,000 but not over $75,000 $2,585 plus 6.0% of
excess over $56,000
Over $75,000 but not over $125,000 $3,725 plus 6.5% of
excess over $75,000
Over $125,000 but not over $175,000 $6,975 plus 6.9% of
excess over $125,000
Over $175,000 $10,425 plus 7.9% of
excess over $175,000.
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%] 1.3% of taxable income
Over $8,000 but not over $16,000 [$136] $104 plus [3.2%] 2.8% of excess over $8,000
Over $16,000 but not over $24,000 [$392] $328 plus [4.7%] 4.3% of excess over $16,000
Over $24,000 but not over $55,000 [$768] $672 plus 4.9% of
excess over $24,000
Over $55,000 but not over $85,000 $2,191 plus 5.2% of
excess over $55,000
Over $85,000 but not over $115,000 $3,751 plus 5.9% of
excess over $85,000
Over $115,000 but not over $150,000 $5,521 plus 6.5% of
excess over $115,000
Over $150,000 but not over $250,000 $7,796 plus 6.9% of
excess over $150,000
Over $250,000 $14,696 plus 7.9% of
excess over $250,000.
C. For surviving spouses and married individuals filing joint returns:
If the taxable income is: The tax shall be:
Not over $8,000 1.3% of taxable income
Over $8,000 but not over $16,000 $104 plus 3.0% of
excess over $8,000
Over $16,000 but not over $24,000 $344 plus 4.7% of
excess over $16,000
Over $24,000 but not over $55,000 $720 plus 4.9% of
excess over $24,000
Over $55,000 but not over $85,000 $2,239 plus 5.5% of
excess over $55,000
Over $85,000 but not over $115,000 $3,889 plus 5.9% of
excess over $85,000
Over $115,000 but not over $150,000 $5,569 plus 6.5% of
excess over $115,000
Over $150,000 but not over $250,000 $7,934 plus 6.9% of
excess over $150,000
Over $250,000 $14,834 plus 7.9% of
excess over $250,000.
[C.] D. 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] $94.00 plus 3.2% of excess over $5,500
Over $11,000 but not over $16,000 [$269.50] $270 plus 4.7% of excess over $11,000
Over $16,000 but not over $36,000 [$504.50] $505 plus 4.9% of excess over $16,000
Over $36,000 but not over $56,000 $1,485 plus 5.5% of
excess over $36,000
Over $56,000 but not over $75,000 $2,585 plus 6.0% of
excess over $56,000
Over $75,000 but not over $125,000 $3,725 plus 6.5% of
excess over $75,000
Over $125,000 but not over $175,000 $6,975 plus 6.9% of
excess over $125,000
Over $175,000 $10,425 plus 7.9% of
excess over $175,000.
[D.] E. 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. Section 7-2-14 NMSA 1978 (being Laws 1972, Chapter 20, Section 2, as amended) is amended to read:
"7-2-14. LOW-INCOME COMPREHENSIVE TAX REBATE.--
A. Except as otherwise provided in Subsection B of this section, any resident who files an individual New Mexico income tax return and who is not a dependent of another individual may claim a tax rebate for a portion of state and local taxes to which the resident has been subject during the taxable year for which the return is filed. The tax rebate may be claimed even though the resident has no income taxable under the Income Tax Act. [A husband and wife] Married individuals who file separate returns for a taxable year in which they could have filed a joint return may each claim only one-half of the tax rebate that would have been allowed on a joint return.
B. No claim for the tax rebate provided in this section shall be filed by a resident who was an inmate of a public institution for more than six months during the taxable year for which the tax rebate could be claimed or who was not physically present in New Mexico for at least six months during the taxable year for which the tax rebate could be claimed.
C. For the purposes of this section, the total number of exemptions for which a tax rebate may be claimed or allowed is determined by adding the number of federal exemptions allowable for federal income tax purposes for each individual included in the return who is domiciled in New Mexico plus two additional exemptions for each individual domiciled in New Mexico included in the return who is sixty-five years of age or older plus one additional exemption for each individual domiciled in New Mexico included in the return who, for federal income tax purposes, is blind plus one exemption for each minor child or stepchild of the resident who would be a dependent for federal income tax purposes if the public assistance contributing to the support of the child or stepchild was considered to have been contributed by the resident.
D. The tax rebate provided for in this section may be claimed in the amount shown in the following table for any taxable year beginning on or after January 1, 2020:
Modified gross And the total number
income is: of exemptions is:
But Not 6 or
Over Over 1 2 3 4 5 More
[$ 0 $ 500 $ 120 $ 160 $ 200 $ 240 $ 280 $ 320
500 1,000 135 195 250 310 350 415
1,000 1,500 135 195 250 310 350 435
1,500 2,000 135 195 250 310 350 450
2,000 2,500 135 195 250 310 350 450
2,500 3,000 135 195 250 310 350 450
3,000 3,500 135 195 250 310 350 450
3,500 4,000 135 195 250 310 355 450
4,000 4,500 135 195 250 310 355 450
4,500 5,000 125 190 240 305 355 450
5,000 5,500 115 175 230 295 355 430
5,500 6,000 105 155 210 260 315 410
6,000 7,000 90 130 170 220 275 370
7,000 8,000 80 115 145 180 225 295
8,000 9,000 70 105 135 170 195 240
9,000 10,000 65 95 115 145 175 205
10,000 11,000 60 80 100 130 155 185
11,000 12,000 55 70 90 110 135 160
12,000 13,000 50 65 85 100 115 140
13,000 14,000 50 65 85 100 115 140
14,000 15,000 45 60 75 90 105 120
15,000 16,000 40 55 70 85 95 110
16,000 17,000 35 50 65 80 85 105
17,000 18,000 30 45 60 70 80 95
18,000 19,000 25 35 50 60 70 80
19,000 20,000 20 30 40 50 60 65
20,000 21,000 15 25 30 40 50 55
21,000 22,000 10 20 25 35 40 45]
$0 $770 $186 $248 $310 $372 $433 $495
770 1,550 209 302 387 480 542 642
1,550 2,320 209 302 387 480 542 673
2,320 3,100 209 302 387 480 542 697
3,100 3,870 209 302 387 480 542 697
3,870 4,640 209 302 387 480 542 697
4,640 5,420 209 302 387 480 542 697
5,420 6,190 209 302 387 480 550 697
6,190 6,970 209 302 387 480 550 697
6,970 7,740 194 294 372 472 550 697
7,740 8,510 178 271 356 457 550 666
8,510 9,290 163 240 325 403 488 635
9,290 10,840 139 201 263 341 426 573
10,840 12,390 124 178 224 279 348 457
12,390 13,930 108 163 209 263 302 372
13,930 15,480 101 147 178 224 271 317
15,480 17,030 93 124 155 201 240 286
17,030 18,580 85 108 139 170 209 248
18,580 20,130 77 101 132 155 178 217
20,130 21,670 77 101 132 155 178 217
21,670 23,220 70 93 116 139 163 186
23,220 24,770 62 85 108 132 147 170
24,770 26,320 54 77 101 124 132 163
26,320 27,870 46 70 93 108 124 147
27,870 29,410 39 54 77 93 108 124
29,410 30,960 31 46 62 77 93 101
30,960 32,510 23 39 46 62 77 85
32,510 34,060 15 31 39 54 62 70.
E. If a taxpayer's modified gross income is zero, the taxpayer may claim a credit in the amount shown in the first row of the table appropriate for the taxpayer's number of exemptions.
F. The tax rebates provided for in this section may be deducted from the taxpayer's New Mexico income tax liability for the taxable year. If the tax rebates exceed the taxpayer's income tax liability, the excess shall be refunded to the taxpayer.
G. For purposes of this section, "dependent" means "dependent" as defined by Section 152 of the Internal Revenue Code [of 1986], as that section may be amended or renumbered, but also includes any minor child or stepchild of the resident who would be a dependent for federal income tax purposes if the public assistance contributing to the support of the child or stepchild was considered to have been contributed by the resident."
SECTION 3. REPEAL.--That version of Section 7-2-7 NMSA 1978 (being Laws 2005 (1st S.S.), Chapter 3, Section 2) is repealed.
SECTION 4. EFFECTIVE DATE.--The effective date of the provisions of this act is January 1, 2020.
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