HOUSE BILL 538
54th legislature - STATE OF NEW MEXICO - first session, 2019
INTRODUCED BY
Daymon Ely
AN ACT
RELATING TO TAXATION; EXEMPTING A CERTAIN AMOUNT OF SOCIAL SECURITY INCOME FROM INCOME TAX; PROVIDING A CONTINGENT EFFECTIVE DATE.
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 individual]
A. For taxable years beginning on or after the effective date of this 2019 act:
(1) 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
(2) 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] Subparagraphs (a) through (c) of this [section] paragraph 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.] (a) 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.] (b) 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; and
[C.] (c) 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.
B. 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. CONTINGENT EFFECTIVE DATE.--The effective date of the provisions of this act is the effective date of a New Mexico law that legalizes marijuana used for recreational purposes; provided that the marijuana is subject to New Mexico taxation. The regulation and licensing department shall certify to the taxation and revenue department, the New Mexico compilation commission and the director of the legislative council service of the enactment of such a law.
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