44th legislature - STATE OF NEW MEXICO - second session, 2000

RELATING TO TAXATION; PROVIDING A ONE-TIME INCOME TAX CREDIT TO ALL TAXPAYERS IN NEW MEXICO FROM SAVINGS REALIZED BY THE EXECUTIVE BRANCH OF GOVERNMENT.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. "[NEW MATERIAL] LEGISLATIVE FINDINGS--PURPOSE OF ACT.--

A. The legislature finds that Governor Gary Johnson projected that:

(1) he would save the state forty million dollars ($40,000,000) by housing inmates in private prisons;

(2) he would save the state one hundred million dollars ($100,000,000) on medicaid during the first year of managed care; and

(3) the highway warranty on state highway 44 would save the state eighty-nine million dollars ($89,000,000).

B. The purpose of this act is to provide the citizens of New Mexico with the tax relief they should be entitled to if Governor Gary Johnson's projected savings are realized.

Section 2. A new section of the Income Tax Act is enacted to read:

"[NEW MATERIAL] ONE-TIME CREDIT--GOVERNMENT SAVINGS.--A taxpayer who files an individual New Mexico income tax return and is not a dependent of another taxpayer is entitled to a tax credit from savings realized by the executive branch of government. The credit shall be equal to twenty-five percent of the taxpayer's tax liability for the tax year. A husband and wife who file separate returns for the taxable year in which they could have filed a joint return may each claim only one-half of the credit that would have been allowed on a joint return. The credit shall only be deducted from the taxpayer's New Mexico income tax liability for the taxable year."

Section 3. DELAYED REPEAL.--Sections 1 and 2 of this act are repealed effective January 1, 2002.

Section 4. APPLICABILITY.--The provisions of this act apply to taxable years beginning in 2000.