0001| SENATE BILL 604
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0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997
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0003| INTRODUCED BY
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0004| PHIL A. GRIEGO
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0005|
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0006|
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0007|
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0008|
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0009|
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0010| AN ACT
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0011| RELATING TO TAXATION; EXPANDING ELIGIBILITY FOR THE LOCAL
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0012| OPTION LOW-INCOME PROPERTY TAX REBATE PURSUANT TO THE INCOME
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0013| TAX ACT.
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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 7-2-14.3 NMSA 1978 (being Laws 1994,
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0017| Chapter 111, Section 1) is amended to read:
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0018| "7-2-14.3. TAX REBATE OF PART OF PROPERTY TAX DUE FROM
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0019| LOW-INCOME TAXPAYER--LOCAL OPTION--REFUND.--
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0020| A. The tax rebate provided by this section may be
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0021| claimed for the taxable year for which the return is filed by
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0022| an individual who:
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0023| (1) has his principal place of residence in a
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0024| county that has adopted an ordinance pursuant to Subsection G
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0025| of this section;
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0001| (2) is not a dependent of another individual;
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0002| (3) files a return; and
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0003| (4) incurred a property tax liability on his
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0004| principal place of residence in the taxable year.
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0005| B. The tax rebate provided by this section shall be
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0006| allowed for any individual eligible to claim the refund
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0007| pursuant to Subsection A of this section and who:
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0008| (1) was not an inmate of a public institution
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0009| for more than six months during the taxable year;
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0010| (2) was physically present in New Mexico for
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0011| at least six months during the taxable year for which the
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0012| rebate is claimed; and
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0013| (3) is eligible for the rebate as a low-income
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0014| property taxpayer in accordance with the provisions of
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0015| Subsection D of this section.
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0016| C. A husband and wife who file separate returns for
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0017| the taxable year in which they could have filed a joint return
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0018| may each claim only one-half of the tax rebate that would have
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0019| been allowed on the joint return.
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0020| D. As used in the table in this subsection,
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0021| "property tax liability" means the amount of property tax
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0022| resulting from the imposition of the county and municipal
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0023| property tax operating impositions on the net taxable value of
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0024| the taxpayer's principal place of residence calculated for the
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0025| year for which the rebate is claimed. The tax rebate provided
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0001| in this section is as specified in the following table:
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0002| LOW-INCOME TAXPAYER'S PROPERTY TAX REBATE TABLE
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0003| Taxpayer's Modified Gross Income Property Tax Rebate
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0004| But Not
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0005| Over Over
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0006| $0 $8,000 75% of property tax liability
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0007| 8,000 10,000 70% of property tax liability
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0008| 10,000 12,000 65% of property tax liability
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0009| 12,000 14,000 60% of property tax liability
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0010| 14,000 16,000 [50%] 55% of property tax
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0011| liability
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0012| 16,000 18,000 50% of property tax liability
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0013| 18,000 20,000 45% of property tax liability
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0014| 20,000 22,000 40% of property tax liability
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0015| 22,000 24,000 35% of property tax liability.
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0016| E. If a taxpayer's modified gross income is zero,
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0017| the taxpayer may claim a tax rebate in the amount shown in the
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0018| first row of the table. The tax rebate provided for in this
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0019| section shall not exceed [two hundred fifty dollars ($250)]
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0020| three hundred fifty dollars ($350) per return and, if a
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0021| return is filed separately that could have been filed jointly,
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0022| the tax rebate shall not exceed [one hundred twenty-five
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dollars ($125)] one hundred seventy-five dollars ($175). No
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0024| tax rebate shall be allowed any taxpayer whose modified gross
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0025| income exceeds [sixteen thousand dollars ($16,000)] twenty-
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0001| four thousand dollars ($24,000).
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0002| F. The tax rebate provided for in this section may
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0003| be deducted from the taxpayer's New Mexico income tax liability
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0004| for the taxable year. If the tax rebate exceeds the taxpayer's
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0005| income tax liability, the excess shall be refunded to the
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0006| taxpayer.
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0007| G. In January of every odd-numbered year in which a
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0008| county does not have in effect an ordinance adopted pursuant to
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0009| this subsection, the board of county commissioners of the
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0010| county shall conduct a public hearing on the question of
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0011| whether [or not] the property tax rebate provided in this
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0012| section benefiting low-income property taxpayers in the county
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0013| should be made available through adoption of a county
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0014| ordinance. Notice of the public hearing shall be published
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0015| once at least two weeks prior to the hearing date in at least
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0016| one newspaper of general circulation in the county and
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0017| broadcast at some time within the week before the hearing on at
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0018| least one radio station with substantial broadcasting coverage
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0019| in the county. At the public hearing, the board shall take
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0020| action on the question and if a majority of the members elected
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0021| votes to adopt an ordinance, it shall be adopted no later than
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0022| thirty days after the public hearing.
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0023| H. An ordinance adopted pursuant to Subsection G of
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0024| this section shall specify the first taxable year to which it
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0025| is applicable. The board of county commissioners adopting an
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0001| ordinance shall notify the department of the adoption of the
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0002| ordinance and furnish a copy of the ordinance to the department
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0003| no later than September 1 of the first taxable year to which
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0004| the ordinance applies.
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0005| I. No later than July 1 of the year immediately
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0006| following the first year in which the low-income taxpayer
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0007| property tax rebate provided in the Income Tax Act is in effect
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0008| for a county, and no later than July 1 of each year
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0009| [therafter] thereafter in which the tax rebate is in
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0010| effect, the department shall certify to the county the amount
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0011| of the loss of income tax revenue to the state for the previous
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0012| taxable year attributable to the allowance of property tax
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0013| rebates to taxpayers of that county. The county shall promptly
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0014| pay the amount certified to the department. If a county fails
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0015| to pay the amount certified within thirty days of the date of
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0016| certification, the department may enforce collection of the
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0017| amount by action against the county and may withhold from any
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0018| revenue distribution to the county, not dedicated or pledged,
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0019| amounts up to the amount certified.
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0020| J. As used in this section, "principal place of
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0021| residence" means the dwelling owned and occupied by the
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0022| taxpayer and so much of the land surrounding it, not to exceed
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0023| five acres, as is reasonably necessary for use of the dwelling
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0024| as a home and may consist of a part of a multidwelling or a
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0025| multipurpose building and a part of the land upon which it is
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0001| built."
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0002| Section 2. APPLICABILITY.--The provisions of this act
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0003| apply to taxable years beginning on or after January 1, 1998.
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0004|
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0005|
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0006| FORTY-THIRD LEGISLATURE
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0007| FIRST SESSION, 1997
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0008|
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0009|
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0010| March 14, 1997
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0011|
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0012| Mr. President:
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0013|
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0014| Your WAYS AND MEANS COMMITTEE, to whom has been
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0015| referred
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0016|
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0017| SENATE BILL 604
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0018|
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0019| has had it under consideration and reports same with
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0020| recommendation that it DO PASS.
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0021|
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0022| Respectfully submitted,
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0023|
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0024|
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0025|
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0001|
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0002| __________________________________
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0003| Carlos R. Cisneros, Chairman
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0004|
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0005|
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0006|
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0007| Adopted_______________________ Not
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0008| Adopted_______________________
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0009| (Chief Clerk) (Chief Clerk)
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0010|
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0011|
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0012|
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0013| Date ________________________
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0014|
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0015|
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0016| The roll call vote was 5 For 0 Against
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0017| Yes: 5
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0018| No: 0
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0019| Excused: Duran, Jennings, McSorley, Wilson
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0020| Absent: None
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0021|
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0022|
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0023| S0604WM1
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