0001| SENATE FINANCE COMMITTEE SUBSTITUTE FOR | 0002| SENATE BILL 395 | 0003| 43rd legislature - STATE OF NEW MEXICO - first session, 1997 | 0004| | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| | 0011| AN ACT | 0012| RELATING TO TAXATION; AMENDING SECTION 7-2-18 NMSA 1978 (BEING | 0013| LAWS 1977, CHAPTER 196, SECTION 1, AS AMENDED) TO AUTHORIZE | 0014| COUNTIES TO PROVIDE FOR AN EXPANDED TAX REBATE FOR PROPERTY TAX | 0015| DUE FOR CERTAIN TAXPAYERS SIXTY-FIVE YEARS OF AGE AND OLDER. | 0016| | 0017| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0018| Section 1. Section 7-2-18 NMSA 1978 (being Laws 1977, | 0019| Chapter 196, Section 1, as amended) is amended to read: | 0020| "7-2-18. TAX REBATE OF PROPERTY TAX DUE [WHICH] THAT | 0021| EXCEEDS THE ELDERLY TAXPAYER'S MAXIMUM PROPERTY TAX LIABILITY-- | 0022| REFUND.-- | 0023| A. Any resident who has attained the age of sixty- | 0024| five and files an individual New Mexico income tax return and | 0025| is not a dependent of another individual may claim a tax rebate | 0001| for the taxable year for which the return is filed. The tax | 0002| rebate shall be the amount of property tax due on the | 0003| resident's principal place of residence for the taxable year | 0004| [which] that exceeds the property tax liability indicated by | 0005| the table in Subsection F or G, as appropriate, of this sec- | 0006| | 0007| tion, based upon the taxpayer's modified gross income. | 0008| B. Any resident otherwise qualified under this | 0009| section who rents a principal place of residence from another | 0010| person may calculate the amount of property tax due by | 0011| multiplying the gross rent for the taxable year by six percent. | 0012| The tax rebate shall be the amount of property tax due on the | 0013| taxpayer's principal place of residence for the taxable year | 0014| [which] that exceeds the property tax liability indicated by | 0015| the table in Subsection F or G, as appropriate, of this | 0016| section, based upon the taxpayer's modified gross income. | 0017| C. As used in this section, "principal place of | 0018| residence" [for purposes of this section] means the resident's | 0019| dwelling, whether owned or rented, and so much of the land | 0020| surrounding it, not to exceed five acres, as is reasonably | 0021| necessary for use of the dwelling as a home and may consist of | 0022| a part of a multi-dwelling or a multi-purpose building and a | 0023| part of the land upon which it is built. | 0024| D. No claim for the tax rebate provided in this | 0025| section shall be allowed a resident who was an inmate of a | 0001| public institution for more than six months during the taxable | 0002| year or who was not physically present in New Mexico for at | 0003| least six months during the taxable year for which the tax | 0004| rebate could be claimed. | 0005| E. A husband and wife who file separate returns for a | 0006| taxable year in which they could have filed a joint return may | 0007| each claim only one-half of the tax rebate that would have been | 0008| allowed on a joint return. | 0009| F. [The] For taxpayers whose principal place of | 0010| residence is in a county that does not have in effect for the | 0011| taxable year a resolution in accordance with Subsection J of this | 0012| section, the tax rebate provided for in this section may be | 0013| claimed in the amount of the property tax due each taxable year | 0014| [which] that exceeds the amount shown as property tax liability in | 0015| the following table: | 0016| ELDERLY HOMEOWNERS' MAXIMUM PROPERTY TAX LIABILITY TABLE | 0017| Property Tax | 0018| Taxpayer's Modified Gross Income Liability | 0019| But Not | 0020| Over Over | 0021| $ 0 $ 1,000 $20 | 0022| 1,000 2,000 25 | 0023| 2,000 3,000 30 | 0024| 3,000 4,000 35 | 0025| 4,000 5,000 40 | 0001| 5,000 6,000 45 | 0002| 6,000 7,000 50 | 0003| 7,000 8,000 55 | 0004| 8,000 9,000 60 | 0005| 9,000 10,000 75 | 0006| 10,000 11,000 90 | 0007| 11,000 12,000 105 | 0008| 12,000 13,000 120 | 0009| 13,000 14,000 135 | 0010| 15,000 16,000 180. | 0011| G. For taxpayers whose principal place of residence is | 0012| in a county that has in effect for the taxable year a resolution | 0013| in accordance with Subsection J of this section, the tax rebate | 0014| provided for in this section may be claimed in the amount of the | 0015| property tax due each taxable year that exceeds the amount shown | 0016| as property tax liability in the following table: | 0017| ELDERLY HOMEOWNERS' MAXIMUM PROPERTY TAX LIABILITY TABLE | 0018| Property Tax | 0019| Taxpayer's Modified Gross Income Liability | 0020| But Not | 0021| Over Over | 0022| $ 0 $ 1,000 $ 20 | 0023| 1,000 2,000 25 | 0024| 2,000 3,000 30 | 0025| 3,000 4,000 35 | 0001| 4,000 5,000 40 | 0002| 5,000 6,000 45 | 0003| 6,000 7,000 50 | 0004| 7,000 8,000 55 | 0005| 8,000 9,000 60 | 0006| 9,000 10,000 75 | 0007| 10,000 11,000 90 | 0008| 11,000 12,000 105 | 0009| 12,000 13,000 120 | 0010| 13,000 14,000 135 | 0011| 14,000 15,000 150 | 0012| 15,000 16,000 165 | 0013| 16,000 17,000 180 | 0014| 17,000 18,000 195 | 0015| 18,000 19,000 210 | 0016| 19,000 20,000 225 | 0017| 20,000 21,000 240 | 0018| 21,000 22,000 255 | 0019| 22,000 23,000 270 | 0020| 23,000 24,000 285 | 0021| 24,000 25,000 300. | 0022| [G.] H. If a taxpayer's modified gross income is zero, | 0023| the taxpayer may claim a tax rebate based upon the amount shown in | 0024| the first row of the appropriate table. The tax rebate provided | 0025| for in this section shall not exceed two hundred fifty dollars | 0001| ($250) per return, and, if a return is filed separately [which] | 0002| that could have been filed jointly, the tax rebate shall not | 0003| exceed one hundred twenty-five dollars ($125). No tax rebate | 0004| shall be allowed any taxpayer whose modified gross income exceeds | 0005| sixteen thousand dollars ($16,000) for taxpayers whose principal | 0006| place of residence is in a county that does not have in effect for | 0007| the taxable year a resolution in accordance with Subsection J of | 0008| this section and twenty-five thousand dollars ($25,000) for all | 0009| other taxpayers. | 0010| [H.] I. The tax rebate provided for in this section | 0011| may be deducted from the taxpayer's New Mexico income tax | 0012| liability for the taxable year. If the tax rebate exceeds the | 0013| taxpayer's income tax liability, the excess shall be refunded to | 0014| the taxpayer. | 0015| J. The board of county commissioners may adopt a | 0016| resolution authorizing otherwise qualified taxpayers whose | 0017| principal place of residence is in the county to claim the rebate | 0018| provided by this section in the amounts set forth in Subsection G | 0019| of this section. The resolution must also provide that the county | 0020| will reimburse the state for the additional amount of tax rebates | 0021| paid to such taxpayers over the amount that would have been paid | 0022| to such taxpayers under Subsection F of this section. The | 0023| resolution may apply to one or more taxable years. The county | 0024| must adopt the resolution and notify the department of the | 0025| adoption by no later than September 1 of the taxable year to which | 0001| the resolution first applies. The department shall determine the | 0002| additional amounts paid to taxpayers of the county for each | 0003| taxable year and shall bill the county for the amount at the time | 0004| and in the manner determined by the department. If the county | 0005| fails to pay any bill within thirty days, the department may | 0006| deduct the amount due from any amount to be transferred or | 0007| distributed to the county by the state, other than debt | 0008| interceptions." | 0009| Section 2. APPLICABILITY.--The provisions of this act apply | 0010| to taxable years beginning on or after January 1, 1997. | 0011|  |