0001| SENATE BILL 389
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0002| 42ND LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION,
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0003| 1996
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0004| INTRODUCED BY
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0005| CARLOS R. CISNEROS
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0007|
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0008|
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0009|
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0010|
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0011| AN ACT
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0012| RELATING TO TAXATION; AMENDING THE INCOME TAX ACT TO EXPAND THE
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0013| TAX REBATE TO PERMANENTLY DISABLED TAXPAYERS.
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0014|
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0015| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0016| Section 1. Section 7-2-18 NMSA 1978 (being Laws 1977,
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0017| Chapter 196, Section 1, as amended) is amended to read:
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0018| "7-2-18. TAX REBATE OF PROPERTY TAX DUE [WHICH] THAT
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0019| EXCEEDS [THE] AN ELDERLY OR PERMANENTLY DISABLED
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0020| TAXPAYER'S MAXIMUM PROPERTY TAX LIABILITY--REFUND.--
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0021| A. Any resident who has attained the age of sixty-five or who is fifty percent or more permanently disabled and
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0022| files an individual New Mexico income tax return and is not a
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0023| dependent of another individual may claim a tax rebate for the
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0024| taxable year for which the return is filed. The tax rebate
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0025| shall be the amount of property tax due on the resident's
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0001| principal place of residence for the taxable year [which]
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0002| that exceeds the property tax liability indicated by the table
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0003| in Subsection F of this section, based upon the taxpayer's modi-
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0004| fied gross income.
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0005| B. Any resident otherwise qualified under this
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0006| section who rents a principal place of residence from another
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0007| person may calculate the amount of property tax due by
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0008| multiplying the gross rent for the taxable year by six percent.
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0009| The tax rebate shall be the amount of property tax due on the
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0010| taxpayer's principal place of residence for the taxable year
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0011| [which] that exceeds the property tax liability indicated by
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0012| the table in Subsection F of this section, based upon the tax-
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0013| payer's
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0014| modified gross income.
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0015| C. "Principal place of residence" for purposes of
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0016| this section means the dwelling, whether owned or rented, and so
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0017| much of the land surrounding it, not to exceed five acres, as is
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0018| reasonably necessary for use of the dwelling as a home and may
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0019| consist of a part of a multi-dwelling or a multipurpose building
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0020| and a part of the land upon which it is built.
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0021| D. No claim for the tax rebate provided in this
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0022| section shall be allowed a resident who was an inmate of a
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0023| public institution for more than six months during the taxable
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0024| year or who was not physically present in New Mexico for at
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0025| least six months during the taxable year for which the tax
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0001| rebate could be claimed.
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0002| E. A husband and wife who file separate returns for
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0003| a taxable year in which they could have filed a joint return may
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0004| each claim only one-half of the tax rebate that would have been
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0005| allowed on a joint return.
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0006| F. The tax rebate provided for in this section may
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0007| be claimed in the amount of the property tax due each taxable
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0008| year [which] that exceeds the amount shown as property tax
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0009| liability in the following table:
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0010| ELDERLY AND DISABLED HOMEOWNERS' MAXIMUM PROPERTY TAX LIABILITY TABLE
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0011| Property Tax
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0012| Taxpayer's Modified Gross Income Liability
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0013| But Not
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0014| Over Over
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0015| $ 0 $1,000 $20
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0016| 1,000 2,000 25
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0017| 2,000 3,000 30
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0018| 3,000 4,000 35
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0019| 4,000 5,000 40
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0020| 5,000 6,000 45
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0021| 6,000 7,000 50
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0022| 7,000 8,000 55
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0023| 8,000 9,000 60
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0024| 9,000 10,000 75
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0025| 10,000 11,000 90
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0001| 11,000 12,000 105
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0002| 12,000 13,000 120
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0003| 13,000 14,000 135
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0004| 14,000 15,000 150
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0005| 15,000 16,000 180.
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0006| G. If a taxpayer's modified gross income is zero,
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0007| the taxpayer may claim a tax rebate based upon the amount shown
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0008| in the first row of the table. The tax rebate provided for in
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0009| this section shall not exceed [two hundred fifty dollars
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($250)] five hundred dollars ($500) per return, and, if a
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0011| return is filed separately [which] that could have been
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0012| filed jointly, the tax rebate shall not exceed [one hundred
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twenty-five dollars ($125)] two hundred fifty dollars ($250).
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0014| No tax rebate shall be allowed any taxpayer whose modified gross
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0015| income exceeds
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0016| [sixteen thousand dollars ($16,000)] twenty-five thousand
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0017| dollars ($25,000).
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0018| H. The tax rebate provided for in this section may
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0019| be deducted from the taxpayer's New Mexico income tax liability
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0020| for the taxable year. If the tax rebate exceeds the taxpayer's
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0021| income tax liability, the excess shall be refunded to the
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0022| taxpayer."
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0023| Section 2. APPLICABILITY.--The provisions of this act
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0024| apply to taxable years beginning on or after January 1, 1996.
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0025|
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0001|
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0002| FORTY-SECOND LEGISLATURE
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0003| SECOND SESSION, 1996
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0004|
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0005|
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0006| JANUARY 29, 1996
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0007|
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0008| Mr. President:
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0009|
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0010| Your COMMITTEES' COMMITTEE, to whom has been referred
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0011|
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0012| SENATE BILL 389
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0013|
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0014| has had it under consideration and finds same to be GERMANE, PURSUANT
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0015| TO CONSTITUIONAL PROVISIONS, and thence referred to the WAYS AND
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0016| MEANS COMMITTEE.
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0017|
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0018| Respectfully submitted,
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0019|
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0020|
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0021|
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0022|
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0023| __________________________________
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0024| SENATOR MANNY M. ARAGON, Chairman
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0025|
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0001|
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0002|
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0003| Adopted_______________________ Not Adopted_______________________
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0004| (Chief Clerk) (Chief Clerk)
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0005|
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0006|
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0007| Date ________________________
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0008|
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0009|
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0010|
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0011| S0389CC1
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