SENATE BILL 349

47th legislature - STATE OF NEW MEXICO - first session, 2005

INTRODUCED BY

Ben D. Altamirano

AN ACT

RELATING TO TAXATION; PROVIDING FOR A PARTIAL INCOME TAX EXEMPTION FOR MILITARY RETIREMENT PENSIONS RECEIVED BY VETERANS FOR THE PURPOSE OF PROMOTING ECONOMIC DEVELOPMENT IN NEW MEXICO.

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--MILITARY RETIREMENT PAY.--For the purpose of promoting economic development in New Mexico, an amount not to exceed fifty percent of military retirement pensions received by a veteran during the taxable year is exempt from taxation."

     Section 2. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2005.