44th legislature - STATE OF NEW MEXICO - first session, 1999

RELATING TO TAXATION; AMENDING THE INCOME TAX ACT TO PROVIDE A DEDUCTION FOR NET CAPITAL GAIN 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] DEDUCTION--NET CAPITAL GAIN INCOME.--

A. A taxpayer may claim a deduction from net income in an amount equal to the following amounts of the taxpayer's net capital gain income for the taxable year for which the deduction is being claimed:

(1) one-third for taxable years beginning in 1999;

(2) two-thirds for taxable years beginning in 2000; and

(3) all net capital gain income for taxable years beginning on or after January 1, 2001.

B. A husband and wife who file separate returns for a taxable year in which they could have filed a joint return may each claim only one-half of the deduction provided by this section that would have been allowed on the joint return.

C. Taxpayers having income both within and without this state shall apportion this deduction in accordance with rules of the secretary."

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