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

RELATING TO TAXATION; REDUCING INCOME TAXES BY PROVIDING AN EXEMPTION FOR CHILDREN WHO ARE SCHOOLED AT HOME.

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--CHILD SCHOOLED AT HOME.--

A. A resident who files an individual New Mexico income tax return and is not a dependent of another taxpayer may claim an exemption for each eligible dependent of the resident in an amount determined in Subsection B of this section of income includable except for this exemption in net income.

B. The amount of the exemption that may be claimed in Subsection A of this section for each eligible dependent shall be seven hundred dollars ($700) for the school year ending during the taxable year for an eligible dependent who is registered as attending a home school for the entire school year. The amount of the exemption shall be one-half of that amount for an eligible dependent who is registered as attending a home school for less than the entire school year but at least one-half of the school year ending during the taxable year. An exemption may not be claimed for an eligible dependent who is registered as attending a home school for less than one-half of the school year ending in the taxable year.

C. The secretary may adopt rules or instructions to require reasonable documentation of home schooling.

D. As used in this section:

(1) "dependent" means "dependent" as defined in Section 152 of the Internal Revenue Code, but also includes any minor child or stepchild of the resident who would be a dependent for federal income tax purposes if the public assistance contributing to the support of the child or stepchild was considered to have been contributed by the resident; and

(2) "eligible dependent" means a dependent who is:

(a) a school-age person who is registered with the state department of public education as attending a home school, as that term is defined in the Public School Code, during the school year that ended during the taxable year; and

(b) claimed as a dependent on the resident's federal income tax return or who would have been entitled to be claimed as a dependent on the resident's federal return, if the resident did not file a federal return."

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