HOUSE BILL 477

54th legislature - STATE OF NEW MEXICO - first session, 2019

INTRODUCED BY

Gail Armstrong and Daymon Ely

 

 

 

 

 

AN ACT

RELATING TO TAXATION; EXEMPTING A CERTAIN AMOUNT OF SOCIAL SECURITY INCOME FROM INCOME TAX.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. Section 7-2-5.2 NMSA 1978 (being Laws 1985, Chapter 114, Section 1, as amended) is amended to read:

     "7-2-5.2. EXEMPTION--SOCIAL SECURITY INCOME--INCOME OF PERSONS SIXTY-FIVE AND OLDER OR BLIND.--[Any] Pursuant to this section:

          A. an individual may claim an exemption in an amount equal to twenty-four thousand dollars ($24,000) of the individual's net income from the supplemental security income program under Title 16 of the federal Social Security Act; or

          B. if an individual does not receive such income but is sixty-five years of age or older or who, for federal income tax purposes, is blind, the individual may claim an exemption in an amount specified in [Subsections A through C] Paragraphs (1) through (3) of this [section] subsection not to exceed eight thousand dollars ($8,000) of income includable except for this exemption in net income: [Individuals having income both within and without this state shall apportion this exemption in accordance with regulations of the secretary.

                A.] (1) For married individuals filing separate returns, for any taxable year beginning on or after January 1, 1987:

                                      The maximum amount of

If adjusted                           exemption allowable under

gross income is:                       this section shall be:

Not over $15,000                                $8,000

Over $15,000 but not over $16,500               $7,000

Over $16,500 but not over $18,000               $6,000

Over $18,000 but not over $19,500               $5,000

Over $19,500 but not over $21,000               $4,000

Over $21,000 but not over $22,500               $3,000

Over $22,500 but not over $24,000               $2,000

Over $24,000 but not over $25,500               $1,000

Over $25,500                                         0.

             [B.] (2) For heads of household, surviving spouses and married individuals filing joint returns, for any taxable year beginning on or after January 1, 1987:

                                      The maximum amount of

If adjusted                           exemption allowable under

gross income is:                       this section shall be:

Not over $30,000                                $8,000

Over $30,000 but not over $33,000               $7,000

Over $33,000 but not over $36,000               $6,000

Over $36,000 but not over $39,000               $5,000

Over $39,000 but not over $42,000               $4,000

Over $42,000 but not over $45,000               $3,000

Over $45,000 but not over $48,000               $2,000

Over $48,000 but not over $51,000               $1,000

Over $51,000                                         0.

             [C.] (3) For single individuals, for any taxable year beginning on or after January 1, 1987:

                                      The maximum amount of

If adjusted                           exemption allowable under

gross income is:                       this section shall be:

Not over $18,000                                $8,000

Over $18,000 but not over $19,500               $7,000

Over $19,500 but not over $21,000               $6,000

Over $21,000 but not over $22,500               $5,000

Over $22,500 but not over $24,000               $4,000

Over $24,000 but not over $25,500               $3,000

Over $25,500 but not over $27,000               $2,000

Over $27,000 but not over $28,500               $1,000

Over $28,500                                         0.

          C. Individuals having income both within and without this state shall apportion the exemptions provided in this section in accordance with rules of the secretary."

    SECTION 2. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2019.

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