44TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 1999

RELATING TO TAXATION; EXEMPTING FROM INCOME TAXATION CERTAIN ANNUITY AND PENSION INCOME.

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--ANNUITY AND PENSION INCOME.--

A. An individual may claim an exemption from income taxation for annuity or pension income included in base income in an amount not to exceed three thousand dollars ($3,000).

B. As used in this section, "annuity or pension income" means that pension or annuity income required by federal law or regulation to be reported on information return federal form 1099-R or any successor form used to report distributions from pensions, annuities, retirement or profit-sharing plans, individual retirement accounts, insurance contracts and similar income that is attributable to any benefit taxable for federal income tax purposes paid to an individual under a qualified plan, annuity or simplified employee pension plan pursuant to Section 401 through 404, 408 or 457 of the Internal Revenue Code and including any inside buildup of interest distributed in conjunction with any of the listed distributions."

Section 2. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 1999.