SENATE BILL 85

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

INTRODUCED BY

Harold Pope and Siah Correa Hemphill

AN ACT

RELATING TO TAXATION; PROVIDING AN INCOME TAX EXEMPTION IN AN AMOUNT EQUAL TO THIRTY THOUSAND DOLLARS ($30,000) OF MILITARY RETIREMENT PAY.

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--ARMED FORCES RETIREMENT PAY.--

          A. An individual who is an armed forces retiree may claim an exemption in an amount equal to thirty thousand dollars ($30,000) of military retirement pay includable, except for this exemption, in net income.

          B. As used in this section, "armed forces retiree" means a former member of the armed forces of the United States who has qualified by years of service or disability to separate from military service with lifetime benefits."

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

- 2 -