SENATE BILL 166
46th legislature - STATE OF NEW MEXICO - second session, 2004
INTRODUCED BY
Joseph J. Carraro
AN ACT
RELATING TO TAXATION; REDUCING INCOME TAX RATES FOR LOW AND MODERATE INCOME TAXPAYERS OVER A FOUR-YEAR PERIOD.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. That version of Section 7-2-7 NMSA 1978 that became effective January 1, 2004 (being Laws 2003, Chapter 2, Section 3) is amended to read:
"7-2-7. INDIVIDUAL INCOME TAX RATES.--The tax imposed by Section 7-2-3 NMSA 1978 shall be at the following rates for any taxable year beginning in 2004:
A. For married individuals filing separate returns:
If the taxable income is: The tax shall be:
Not over $4,000 [1.7%] 1.5% of taxable income
Over $ 4,000 but not over $ 8,000 $[68.00] 60.00 plus [3.2%]
3.0% of excess over $ 4,000
Over $ 8,000 but not over $ 12,000 $ [196] 180 plus [4.7%] 4.5% of
excess over $ 8,000
Over $ 12,000 but not over $ 20,000 $[384] 360 plus [6.0%] 5.5% of
excess over $ 12,000
Over $ 20,000 $[864] 800 plus 6.8% of
excess over $ 20,000.
B. For surviving spouses and married individuals filing
joint returns:
If the taxable income is: The tax shall be:
Not over $8,000 [1.7%] 1.5% of taxable income
Over $ 8,000 but not over $ 16,000 $[136] 120 plus [3.2%] 3.0% of
excess over $ 8,000
Over $ 16,000 but not over $ 24,000 $[392] 360 plus [4.7%] 4.5% of excess over $ 16,000
Over $ 24,000 but not over $ 40,000 $[768] 720 plus [6.0%] 5.5% of excess over $ 24,000
Over $ 40,000 $[1,728] 1,600 plus 6.8% of
excess over $ 40,000.
C. For single individuals and for estates and trusts:
If the taxable income is: The tax shall be:
Not over $5,500 [1.7%] 1.5% of taxable income
Over $ 5,500 but not over $ 11,000 $[93.50] 82.50 plus [3.2%]
3.0% of excess over $ 5,500
Over $ 11,000 but not over $ 16,000 $[269.50] 247.50 plus [4.7%]
4.5% of excess over $ 11,000
Over $ 16,000 but not over $ 26,000 $[504.50] 472.50 plus [6.0%]
5.5% of excess over $ 16,000
Over $ 26,000 $[1,104.50] 1,022.50 plus 6.8%
of excess over $ 26,000.
D. For heads of household filing returns:
If the taxable income is: The tax shall be:
Not over $7,000 [1.7%] 1.5% of taxable income
Over $ 7,000 but not over $ 14,000 $[119] 105 plus [3.2%] 3.0% of
excess over $ 7,000
Over $ 14,000 but not over $ 20,000 $[343] 315 plus [4.7%] 4.5% of
excess over $ 14,000
Over $ 20,000 but not over $ 33,000 $[625] 585 plus [6.0%] 5.5% of
excess over $ 20,000
Over $ 33,000 $[1,405] 1,300 plus 6.8% of
excess over $ 33,000.
E. The tax on the sum of any lump-sum amounts included in
net income is an amount equal to five multiplied by the difference between:
(1) the amount of tax due on the taxpayer's taxable income; and
(2) the amount of tax that would be due on an amount equal to the taxpayer's taxable income and twenty percent of the taxpayer's lump-sum amounts included in net income."
Section 2. That version of Section 7-2-7 NMSA 1978 that is to become effective January 1, 2005 (being Laws 2003, Chapter 2, Section 4) is amended to read:
"7-2-7. INDIVIDUAL INCOME TAX RATES.--The tax imposed by Section 7-2-3 NMSA 1978 shall be at the following rates for any taxable year beginning in 2005:
A. For married individuals filing separate returns:
If the taxable income is: The tax shall be:
Not over $4,000 [1.7%] 1.0% of taxable income
Over $ 4,000 but not over $ 8,000 $[68.00] 40.00 plus [3.2%] 2.5%
of excess over $ 4,000
Over $ 8,000 but not over $ 12,000 $[196] 140 plus [4.7%] 4.0% of
excess over $ 8,000
Over $ 12,000 $[384] 300 plus 6.0% of
excess over $ 12,000.
B. For surviving spouses and married individuals filing
joint returns:
If the taxable income is: The tax shall be:
Not over $8,000 [1.7%] 1.0% of taxable income
Over $ 8,000 but not over $ 16,000 $[136] 80.00 plus [3.2%] 2.5% of excess over $ 8,000
Over $ 16,000 but not over $ 24,000 $[392] 280 plus [4.7%] 4.0% of excess over $ 16,000
Over $ 24,000 $[768] 600 plus 6.0% of
excess over $ 24,000.
C. For single individuals and for estates and trusts:
If the taxable income is: The tax shall be:
Not over $5,500 [1.7%] 1.0% of taxable income
Over $ 5,500 but not over $ 11,000 $[93.50] 55.00 plus [3.2%] 2.5%
of excess over $ 5,500
Over $ 11,000 but not over $ 16,000 $[269.50] 192.50 plus [4.7%] 4.0% of excess over $ 11,000
Over $ 16,000 $[504.50] 392.50 plus 6.0% of
excess over $ 16,000.
D. For heads of household filing returns:
If the taxable income is: The tax shall be:
Not over $7,000 [1.7%] 1.0% of taxable income
Over $ 7,000 but not over $ 14,000 $[119] 70.00 plus [3.2%] 2.5% of
excess over $ 7,000
Over $ 14,000 but not over $ 20,000 $[343] 245 plus [4.7%] 4.0% of
excess over $ 14,000
Over $ 20,000 $[625] 485 plus 6.0% of
excess over $ 20,000.
E. The tax on the sum of any lump-sum amounts included in net income is an amount equal to five multiplied by the difference between:
(1) the amount of tax due on the taxpayer's taxable income; and
(2) the amount of tax that would be due on an amount equal to the taxpayer's taxable income and twenty percent of the taxpayer's lump-sum amounts included in net income."
Section 3. That version of Section 7-2-7 NMSA 1978 that is to become effective January 1, 2006 (being Laws 2003, Chapter 2, Section 5) is amended to read:
"7-2-7. INDIVIDUAL INCOME TAX RATES.--The tax imposed by Section 7-2-3 NMSA 1978 shall be at the following rates for any taxable year beginning in 2006:
A. For married individuals filing separate returns:
If the taxable income is: The tax shall be:
Not over $4,000 [1.7%] .5% of taxable income
Over $ 4,000 but not over $ 8,000 $[68.00] 20.00 plus [3.2%] 2.0%
of excess over $ 4,000
Over $ 8,000 but not over $ 12,000 $[196] 100 plus [4.7%] 4.0% of
excess over $ 8,000
Over $ 12,000 $[384] 260 plus 5.3% of
excess over $ 12,000.
B. For surviving spouses and married individuals filing
joint returns:
If the taxable income is: The tax shall be:
Not over $8,000 [1.7%] .5% of taxable income
Over $ 8,000 but not over $ 16,000 $[136] 40.00 plus [3.2%] 2.0%
of excess over $ 8,000
Over $ 16,000 but not over $ 24,000 $[392] 200 plus [4.7%] 3.0% of excess over $ 16,000
Over $ 24,000 $[768] 440 plus 5.3% of
excess over $ 24,000.
C. For single individuals and for estates and trusts:
If the taxable income is: The tax shall be:
Not over $5,500 [1.7%] .5% of taxable income
Over $ 5,500 but not over $ 11,000 $[93.50] 27.50 plus [3.2%] 2.0% of excess over $ 5,500
Over $ 11,000 but not over $ 16,000 $[269.50] 137.50 plus [4.7%]
4.0% of excess over $ 11,000
Over $ 16,000 $[504.50] 337.50 plus 5.3% of
excess over $ 16,000.
D. For heads of household filing returns:
If the taxable income is: The tax shall be:
Not over $7,000 [1.7%] .5% of taxable income
Over $ 7,000 but not over $ 14,000 $[119] 35.00 plus [3.2%] 2.0%
of excess over $ 7,000
Over $ 14,000 but not over $ 20,000 $[343] 175 plus [4.7%] 4.0% of
excess over $ 14,000
Over $ 20,000 $[625] 415 plus 5.3% of
excess over $ 20,000.
E. The tax on the sum of any lump-sum amounts included in net income is an amount equal to five multiplied by the difference between:
(1) the amount of tax due on the taxpayer's taxable income; and
(2) the amount of tax that would be due on an amount equal to the taxpayer's taxable income and twenty percent of the taxpayer's lump-sum amounts included in net income."
Section 4. That version of Section 7-2-7 NMSA 1978 that is to become effective January 1, 2007 (being Laws 2003, Chapter 2, Section 6) is amended to read:
"7-2-7. INDIVIDUAL INCOME TAX RATES.--The tax imposed by Section 7-2-3 NMSA 1978 shall be at the following rates for any taxable year beginning on or after January 1, 2007:
A. For married individuals filing separate returns:
If the taxable income is: The tax shall be:
Not over $4,000 [1.7% of taxable income] $0
Over $4,000 but not over [$ 68.00 plus 3.2% of
$[8,000] 12,000 excess over $ 4,000]
2.0% of taxable income
[Over $ 8,000 but not over $ 12,000] [$ 196 plus 4.7% of
excess over $ 8,000]
Over $ 12,000 $[384] 160 plus 4.9% of
excess over $ 12,000.
B. For surviving spouses and married individuals filing joint returns:
If the taxable income is: The tax shall be:
Not over $8,000 [1.7% of taxable income] $0
Over $8,000 but not over [$136 plus 3.2% of $[16,000] 24,000 excess over $ 8,000]
2.0% of taxable income
[Over $ 16,000 but not over $ 24,000] [$ 392 plus 4.7% of excess over $ 16,000]
Over $ 24,000 $[768] 320 plus 4.9% of
excess over $ 24,000.
C. For single individuals and for estates and trusts:
If the taxable income is: The tax shall be:
Not over $5,500 [1.7% of taxable income] $0
Over $5,500 but not over [$ 93.50 plus 3.2% of $[11,000] 16,000 excess over $ 5,500]
2.0% of taxable income
[Over $ 11,000 but not over $ 16,000] [$ 269.50 plus 4.7% of excess over $ 11,000]
Over $ 16,000 $[504.50] 110 plus 4.9% of
excess over $ 16,000.
D. For heads of household filing returns:
If the taxable income is: The tax shall be:
Not over $7,000 [1.7% of taxable income] $0
Over $7,000 but not over [$ 119 plus 3.2% of
$[14,000] 20,000 excess over $ 7,000]
2.0% taxable income
[Over $ 14,000 but not over $ 20,000] [$ 343 plus 4.7% of
excess over $ 14,000]
Over $ 20,000 $[625] 140 plus 4.9% of
excess over $ 20,000.
E. The tax on the sum of any lump-sum amounts included in net income is an amount equal to five multiplied by the difference between:
(1) the amount of tax due on the taxpayer's taxable income; and
(2) the amount of tax that would be due on an amount equal to the taxpayer's taxable income and twenty percent of the taxpayer's lump-sum amounts included in net income."
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