HOUSE BILL 45

49th legislature - STATE OF NEW MEXICO - first special session, 2009

INTRODUCED BY

Antonio "Moe" Maestas

AN ACT

RELATING TO REVENUE; CREATING ADDITIONAL TAX BRACKETS FOR HIGHER LEVELS OF TAXABLE PERSONAL INCOME.

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

     Section 1. Section 7-2-7 NMSA 1978 (being Laws 2005, Chapter 104, 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 on or after January 1, [2008] 2010:

          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

Over $ 4,000 but not over $ 8,000   $ 68.00 plus 3.2% of excess over $ 4,000

Over $ 8,000 but not over $ 12,000   $ 196 plus 4.7% of  excess over $ 8,000

Over $ 12,000 but not over $ 24,000   $ 384 plus 4.9% of  excess over $ 12,000

Over $ 24,000 but not over $ 48,000   $ 972 plus 5% of excess over $ 24,000

Over $ 48,000 but not over $ 72,000   $ 2,172 plus 5.1% of excess over $ 48,000

Over $ 72,000 but not over $ 96,000   $ 3,396 plus 5.2% of excess over $ 72,000

Over $ 96,000 but not over $120,000   $ 4,644 plus 5.3% of excess over $ 96,000

Over $120,000 but not over $240,000   $ 5,916 plus 5.4% of excess over $120,000

Over $240,000 but not over $480,000   $12,396 plus 5.5% of                                       excess over $240,000

Over $480,000 but not over $600,000   $25,596 plus 5.6% of excess over $480,000

Over $600,000 but not over $720,000   $32,316 plus 5.7% of excess over $600,000

Over $720,000 but not over $840,000   $39,156 plus 5.8% of excess over $720,000

Over $840,000                         $46,116 plus 5.9% of excess over $840,000.

          B. For heads of household, 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

Over $ 8,000 but not over $ 16,000   $ 136 plus 3.2% of                                        excess over $ 8,000

Over $ 16,000 but not over $ 24,000   $ 392 plus 4.7% of                                        excess over $ 16,000

Over $ 24,000 but not over $ 48,000   $ 768 plus 4.9% of  excess over $ 24,000

Over $ 48,000 but not over $ 96,000   $ 1,944 plus 5% of excess over $ 48,000

Over $ 96,000 but not over $144,000   $ 4,344 plus 5.1% of excess over $ 96,000

Over $144,000 but not over $192,000   $6,792 plus 5.2% of                                        excess over $144,000

Over $192,000 but not over $240,000   $ 9,288 plus 5.3% of                                       excess over $ 192,000

Over $240,000 but not over $480,000   $11,832 plus 5.4% of excess over $240,000

Over $480,000 but not over $960,000   $24,792 plus 5.5% of                                       excess over $480,000

Over $960,000 but not over            $51,192 plus 5.6% of

$1,200,000                            excess over $960,000

Over $1,200,000 but not over          $64,632 plus 5.7% of $1,440,000                            excess over $1,200,000

Over $1,440,000 but not over          $78,312 plus 5.8% of $1,680,000                            excess over $1,440,000

Over $1,680,000                       $92,232 plus 5.9% of excess over $1,680,000.

          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

Over $ 5,500 but not over $ 11,000   $ 93.50 plus 3.2% of excess over $ 5,500

Over $ 11,000 but not over $ 16,000   $ 269.50 plus 4.7% of excess over $ 11,000

Over $ 16,000 but not over $ 32,000   $ 504.50 plus 4.9% of excess over $ 16,000

Over $ 32,000 but not over $ 64,000   $ 1,288.50 plus 5% of excess over $ 32,000

Over $ 64,000 but not over $ 96,000   $ 2,888.50 plus 5.1% of excess over $ 64,000

Over $ 96,000 but not over $128,000   $ 4,520.50 plus 5.2% of excess over $ 96,000

Over $128,000 but not over $160,000   $ 6,184.50 plus 5.3% of                                       excess over $128,000

Over $160,000 but not over $320,000   $ 7,880.50 plus 5.4% of excess over $160,000

Over $320,000 but not over $640,000   $16,520.50 plus 5.5% of                                       excess over $320,000

Over $640,000 but not over $800,000   $34,120.50 plus 5.6% of                                       excess over $ 640,000

Over $800,000 but not over $960,000   $43,080.50 plus 5.7% of excess over $800,000

Over $960,000 but not over $1,120,000 $52,200.50 plus 5.8% of                                       excess over $960,000

Over $1,120,000                       $61,480.50 plus 5.9% of excess over $1,120,000.

          D. 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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