HOUSE BILL 49

55th legislature - STATE OF NEW MEXICO - second session, 2022

INTRODUCED BY

Gail Armstrong and Cathrynn N. Brown and Randall T. Pettigrew and Candie G. Sweetser and Rebecca Dow

 

 

 

 

AN ACT

RELATING TO TAXATION; EXEMPTING SOCIAL SECURITY INCOME FROM INCOME TAX.

 

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

     SECTION 1. A new section of the Income Tax Act is enacted to read:

     "[NEW MATERIAL] EXEMPTION--SOCIAL SECURITY INCOME.--

          A. An individual may claim an exemption in an amount equal to the following percentages of the amount included in adjusted gross income pursuant to Section 86 of the Internal Revenue Code, as that section may be amended or renumbered, of income includable except for this exemption in net income:

                (1) for a taxable year beginning on or after January 1, 2022, twenty percent;

                (2) for a taxable year beginning on or after January 1, 2023, forty percent;

                (3) for a taxable year beginning on or after January 1, 2024, sixty percent;

                (4) for a taxable year beginning on or after January 1, 2025 eighty percent; and

                (5) for taxable years beginning on or after January 1, 2026, one hundred percent.

          B. The amount exempted pursuant to Subsection A of this section shall not exceed the individual's net income.

          C. An individual who claims an exemption pursuant to this section shall not claim the exemption pursuant to Section 7-2-5.2 NMSA 1978."

     SECTION 2. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2022.

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