0001| HOUSE BILL 47
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0002| 43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998
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0003| INTRODUCED BY
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0004| DAVID M. PARSONS
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0005|
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0006|
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0007|
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0008| FOR THE REVENUE STABILIZATION AND TAX POLICY COMMITTEE
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0009|
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0010| AN ACT
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0011| RELATING TO TAXATION; AMENDING CERTAIN SECTIONS OF THE INCOME
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0012| TAX ACT.
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0013|
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0014| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0015| Section 1. Section 7-2-5.6 NMSA 1978 (being Laws 1995,
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0016| Chapter 93, Section 8) is amended to read:
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0017| "7-2-5.6. EXEMPTION--MEDICAL CARE SAVINGS ACCOUNTS.--
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0018| Except as provided in Section [6 of this act] 59A-23D-6
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0019| NMSA 1978, employer and employee contributions to medical
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0020| care savings accounts established pursuant to the Medical Care
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0021| Savings Account Act, the interest earned on those accounts and
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0022| money reimbursed to an employee for eligible medical expenses
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0023| from those accounts or money advanced to the employee by the
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0024| employer for eligible medical expenses pursuant to that act
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0025| are exempt from taxation."
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0001| Section 2. Section 7-2-12 NMSA 1978 (being Laws 1965,
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0002| Chapter 202, Section 10, as amended) is amended to read:
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0003| "7-2-12. TAXPAYER RETURNS--PAYMENT OF TAX.--Every
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0004| resident of this state and every individual deriving income
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0005| from any business transaction, property or employment within
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0006| this state and not exempt from tax under the Income Tax Act
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0007| who is required by the laws of the United States to file a
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0008| federal income tax return or who files a federal income tax
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0009| return shall file a complete tax return with the department
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0010| in form and content as prescribed by the secretary. Unless
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0011| otherwise required under the Income Tax Act or prescription of
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0012| the secretary, in completing a return for a taxable year the
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0013| taxpayer shall declare the same filing status and number of
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0014| personal exemptions as the taxpayer declared for federal
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0015| income tax purposes for that same taxable year or, if the
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0016| taxpayer was not required to file a federal income tax return
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0017| for the taxable year, the filing status and number of personal
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0018| exemptions that would have been required or allowed for that
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0019| taxpayer by the Internal Revenue Code and regulations
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0020| thereunder. The return required and the tax imposed on
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0021| individuals under the Income Tax Act are due and payment is
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0022| required on or before the fifteenth day of the fourth month
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0023| following the end of the taxable year."
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0024| Section 3. Section 7-2-12.1 NMSA 1978 (being Laws 1990,
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0025| Chapter 23, Section 1) is amended to read:
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0001| "7-2-12.1. LIMITATION ON CLAIMING OF CREDITS AND TAX
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0002| REBATES.--
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0003| A. Except as provided otherwise in this section, a
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0004| credit or tax rebate provided in the Income Tax Act that is
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0005| claimed shall be disallowed if the claim for the credit or tax
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0006| rebate was first made after the end of the third calendar year
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0007| following the calendar year in which the return upon which the
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0008| credit or tax rebate was first claimable was initially due.
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0009| B. Subsection A of this section does not apply to
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0010| [(1)] the credit authorized by Section 7-2-13 NMSA 1978 for
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0011| income taxes paid another state [or
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(2) the credit authorized by Section 7-2-19
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NMSA 1978 for income taxes paid another state]."
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0014| Section 4. Section 7-2-18 NMSA 1978 (being Laws 1977,
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0015| Chapter 196, Section 1, as amended) is amended to read:
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0016| "7-2-18. TAX REBATE OF PROPERTY TAX DUE THAT EXCEEDS THE
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0017| ELDERLY TAXPAYER'S MAXIMUM PROPERTY TAX LIABILITY--REFUND.--
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0018| A. Any resident who has attained the age of
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0019| sixty-five and files an individual New Mexico income tax
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0020| return and is not a dependent of another individual may claim
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0021| a tax rebate for the taxable year for which the return is
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0022| filed. The tax rebate shall be the amount of property tax due
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0023| on the resident's principal place of residence for the taxable
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0024| year that exceeds the property tax liability indicated by the
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0025| table in Subsection F or G, as appropriate, of this section,
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0001| based upon the taxpayer's modified gross income.
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0002| B. Any resident otherwise qualified under this
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0003| section who rents a principal place of residence from another
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0004| person may calculate the amount of property tax due by
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0005| multiplying the gross rent for the taxable year by six
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0006| percent. The tax rebate shall be the amount of property tax
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0007| due on the taxpayer's principal place of residence for the
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0008| taxable year that exceeds the property tax liability
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0009| indicated by the table in Subsection F or G, as appropriate,
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0010| of this section, based upon the taxpayer's modified gross
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0011| income.
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0012| C. As used in this section, "principal place of
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0013| residence" means the resident's dwelling, whether owned or
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0014| rented, and so much of the land surrounding it, not to exceed
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0015| five acres, as is reasonably necessary for use of the dwelling
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0016| as a home and may consist of a part of a multi-dwelling or a
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0017| multi-purpose building and a part of the land upon which it is
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0018| built.
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0019| D. No claim for the tax rebate provided in this
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0020| section shall be allowed a resident who was an inmate of a
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0021| public institution for more than six months during the taxable
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0022| year or who was not physically present in New Mexico for at
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0023| least six months during the taxable year for which the tax
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0024| rebate could be claimed.
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0025| E. A husband and wife who file separate returns
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0001| for a taxable year in which they could have filed a joint
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0002| return may each claim only one-half of the tax rebate that
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0003| would have been allowed on a joint return.
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0004| F. For taxpayers whose principal place of
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0005| residence is in a county that does not have in effect for the
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0006| taxable year a resolution in accordance with Subsection J of
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0007| this section, the tax rebate provided for in this section may
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0008| be claimed in the amount of the property tax due each taxable
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0009| year that exceeds the amount shown as property tax liability
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0010| in the following table:
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0011| ELDERLY HOMEOWNERS' MAXIMUM PROPERTY TAX LIABILITY TABLE
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0012| Property Tax
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0013| Taxpayer's Modified Gross Income Liability
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0014| But Not
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0015| Over Over
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0016| $ 0 $ 1,000 $20
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0017| 1,000 2,000 25
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0018| 2,000 3,000 30
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0019| 3,000 4,000 35
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0020| 4,000 5,000 40
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0021| 5,000 6,000 45
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0022| 6,000 7,000 50
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0023| 7,000 8,000 55
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0024| 8,000 9,000 60
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0025| 9,000 10,000 75
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0001| 10,000 11,000 90
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0002| 11,000 12,000 105
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0003| 12,000 13,000 120
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0004| 13,000 14,000 135
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0005| 14,000 15,000 150
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0006| 15,000 16,000 180.
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0007| G. For taxpayers whose principal place of
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0008| residence is in a county that has in effect for the taxable
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0009| year a resolution in accordance with Subsection J of this
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0010| section, the tax rebate provided for in this section may be
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0011| claimed in the amount of the property tax due each taxable
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0012| year that exceeds the amount shown as property tax liability
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0013| in the following table:
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0014| ELDERLY HOMEOWNERS' MAXIMUM PROPERTY TAX LIABILITY TABLE
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0015| Property Tax
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0016| Taxpayer's Modified Gross Income Liability
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0017| But Not
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0018| Over Over
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0019| $ 0 $ 1,000 $ 20
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0020| 1,000 2,000 25
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0021| 2,000 3,000 30
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0022| 3,000 4,000 35
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0023| 4,000 5,000 40
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0024| 5,000 6,000 45
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0025| 6,000 7,000 50
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0001| 7,000 8,000 55
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0002| 8,000 9,000 60
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0003| 9,000 10,000 75
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0004| 10,000 11,000 90
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0005| 11,000 12,000 105
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0006| 12,000 13,000 120
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0007| 13,000 14,000 135
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0008| 14,000 15,000 150
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0009| 15,000 16,000 165
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0010| 16,000 17,000 180
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0011| 17,000 18,000 195
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0012| 18,000 19,000 210
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0013| 19,000 20,000 225
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0014| 20,000 21,000 240
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0015| 21,000 22,000 255
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0016| 22,000 23,000 270
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0017| 23,000 24,000 285
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0018| 24,000 25,000 300.
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0019| H. If a taxpayer's modified gross income is zero,
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0020| the taxpayer may claim a tax rebate based upon the amount
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0021| shown in the first row of the appropriate table. The tax
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0022| rebate provided for in this section shall not exceed two
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0023| hundred fifty dollars ($250) per return, and, if a return is
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0024| filed separately that could have been filed jointly, the tax
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0025| rebate shall not exceed one hundred twenty-five dollars
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0001| ($125). No tax rebate shall be allowed any taxpayer whose
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0002| modified gross income exceeds sixteen thousand dollars
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0003| ($16,000) for taxpayers whose principal place of residence is
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0004| in a county that does not have in effect for the taxable year
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0005| a resolution in accordance with Subsection J of this section
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0006| and twenty-five thousand dollars ($25,000) for all other
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0007| taxpayers.
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0008| I. The tax rebate provided for in this section may
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0009| be deducted from the taxpayer's New Mexico income tax
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0010| liability for the taxable year. If the tax rebate exceeds the
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0011| taxpayer's income tax liability, the excess shall be refunded
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0012| to the taxpayer.
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0013| J. The board of county commissioners may adopt a
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0014| resolution authorizing otherwise qualified taxpayers whose
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0015| principal place of residence is in the county to claim the
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0016| rebate provided by this section in the amounts set forth in
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0017| Subsection G of this section. The resolution must also
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0018| provide that the county will reimburse the state for the
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0019| additional amount of tax rebates paid to such taxpayers over
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0020| the amount that would have been paid to such taxpayers under
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0021| Subsection F of this section. The resolution may apply to one
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0022| or more taxable years. If a county adopts such a
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0023| resolution, the county must adopt the resolution and notify
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0024| the department of the adoption by no later than September 1 of
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0025| the taxable year to which the resolution first applies. The
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0001| department shall determine the additional amounts paid to
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0002| taxpayers of the county for each taxable year and shall bill
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0003| the county for the amount at the time and in the manner
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0004| determined by the department. If the county fails to pay any
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0005| bill within thirty days, the department may deduct the amount
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0006| due from any amount to be transferred or distributed to the
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0007| county by the state, other than debt interceptions."
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0008| Section 5. Section 7-2-18.1 NMSA 1978 (being Laws 1981,
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0009| Chapter 170, Section 1, as amended) is amended to read:
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0010| "7-2-18.1. CREDIT FOR EXPENSES FOR DEPENDENT CHILD DAY
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0011| CARE NECESSARY TO ENABLE GAINFUL EMPLOYMENT TO PREVENT
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0012| INDIGENCY.--
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0013| A. As used in this section:
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0014| (1) "caregiver" means a corporation or an
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0015| individual eighteen years of age or over who receives
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0016| compensation from the resident for providing direct care,
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0017| supervision and guidance to a qualifying dependent of the
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0018| resident for less than twenty-four hours daily and includes
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0019| related individuals of the resident but does not include a
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0020| dependent of the resident;
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0021| (2) "cost of maintaining a household" means
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0022| the expenses incurred for the mutual benefit of the occupants
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0023| thereof by reason of its operation as the principal place of
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0024| abode of such occupants, including property taxes, mortgage
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0025| interest, rent, utility charges, upkeep and repairs, property
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0001| insurance and food consumed on the premises. "Cost of
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0002| maintaining a household" shall not include expenses otherwise
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0003| incurred, including cost of clothing, education, medical
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0004| treatment, vacations, life insurance, transportation and
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0005| mortgages;
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0006| (3) "dependent" means "dependent" as defined
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0007| by Section 152 of the Internal Revenue Code, as that section
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0008| may be amended or renumbered, but also includes any minor
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0009| child or stepchild of the resident who would be a dependent
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0010| for federal income tax purposes if the public assistance
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0011| contributing to the support of the child or stepchild was
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0012| considered to have been contributed by the resident;
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0013| (4) "disabled person" means a person who has
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0014| a medically determinable physical or mental impairment, as
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0015| certified by a licensed physician, that renders such person
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0016| unable to engage in gainful employment;
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0017| (5) "gainfully employed" means working for
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0018| remuneration for others, either full time or part time, or
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0019| self-employment in a business or partnership; and
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0020| (6) "qualifying dependent" means a dependent
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0021| under the age of fifteen at the end of the taxable year who
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0022| receives the services of a caregiver.
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0023| B. Any resident who files an individual New Mexico
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0024| income tax return and who is not a dependent of another
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0025| taxpayer may claim a credit for child day care expenses
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0001| incurred and paid to a caregiver in New Mexico during the
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0002| taxable year by such resident if the resident:
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0003| (1) singly or together with a spouse
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0004| furnishes over half the cost of maintaining the household for
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0005| one or more qualifying dependents for any period in the
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0006| taxable year for which the credit is claimed;
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0007| (2) is gainfully employed for any period for
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0008| which the credit is claimed or, if a joint return is filed,
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0009| both spouses are gainfully employed or one is disabled for any
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0010| period for which the credit is claimed;
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0011| (3) compensates a caregiver for child
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0012| day care for a qualifying dependent to enable such resident
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0013| together with his spouse, if any and if not disabled, to be
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0014| gainfully employed;
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0015| (4) is not a recipient of public assistance
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0016| under a program of aid to families with dependent children,
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0017| temporary assistance to needy families or any successor
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0018| program during any period for which the credit provided by
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0019| this section is claimed; and
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0020| (5) has a modified gross income, including
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0021| child support payments, if any, of not more than the annual
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0022| income that would be derived from earnings at double the
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0023| federal minimum wage.
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0024| C. The credit provided for in this section shall
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0025| be forty percent of the actual compensation paid to a
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0001| caregiver by the resident for a qualifying dependent not to
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0002| exceed four hundred eighty dollars ($480) for each qualifying
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0003| dependent or a total of one thousand two hundred dollars
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0004| ($1,200) for all qualifying dependents for a taxable year.
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0005| For the purposes of computing the credit, actual compensation
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0006| shall not exceed eight dollars ($8.00) per day for each
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0007| qualifying dependent.
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0008| D. The caregiver shall furnish the resident with a
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0009| signed statement of compensation paid by the resident to the
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0010| caregiver for day care services. Such statements shall
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0011| specify the dates and the total number of days for which
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0012| payment has been made.
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0013| E. If the resident taxpayer has a federal tax
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0014| liability, the taxpayer shall claim from the state not more
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0015| than the difference between the amount of the state child care
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0016| credit for which the taxpayer is eligible and the federal
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0017| credit for child and dependent care expenses the taxpayer is
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0018| able to deduct from federal tax liability for the same taxable
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0019| year; provided, for first year residents only, the amount of
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0020| the federal credit for child and dependent care expenses may
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0021| be reduced to an amount equal to the amount of federal credit
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0022| for child and dependent care expenses the resident is able to
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0023| deduct from federal tax liability multiplied by the ratio of
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0024| the number of days of residence in New Mexico during the
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0025| resident's taxable year to the total number of days in the
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0001| resident's taxable year.
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0002| F. The credit provided for in this section may be
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0003| deducted from the taxpayer's New Mexico income tax liability
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0004| for the taxable year. If the credit 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. A husband and wife maintaining a household for
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0008| one or more qualifying dependents and filing separate returns
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0009| for a taxable year for which they could have filed a joint
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0010| return:
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0011| (1) may each claim only one-half of the
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0012| credit that would have been claimed on a joint return; and
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0013| (2) are eligible for the credit provided in
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0014| this section only if their joint modified gross income,
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0015| including child support payments, if any, is not more than the
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0016| annual income that would be derived from earnings at double
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0017| the federal minimum wage."
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0018| Section 6. APPLICABILITY.--The provisions of this act
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0019| are applicable to taxable years beginning on or after January
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0020| 1, 1998.
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0021|
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