HOUSE BILL 234

49th legislature - STATE OF NEW MEXICO - second session, 2010

INTRODUCED BY

Antonio "Moe" Maestas

AN ACT

RELATING TO TAXATION; 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 $ 56,250   $ 384 plus 4.9% of  excess over $ 12,000

Over $ 56,250 but not over $187,500   $ 2,552 plus 5.4% of excess over $ 56,250

Over $187,500 but not over $375,000   $ 9,640 plus 5.9% of excess over $187,500

Over $375,000 but not over $750,000   $ 20,702 plus 6.4% of excess over $375,000

Over $750,000                         $ 44,702 plus 6.9% of excess over $750,000.

          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 $112,500   $ 768 plus 4.9% of  excess over $ 24,000

Over $112,500 but not over $375,000   $ 5,105 plus 5.4% of excess over $112,500

Over $375,000 but not over $750,000   $ 19,280 plus 5.9% of excess over $375,000

Over $750,000 but not over $1,500,000 $ 41,405 plus 6.4% of                                       excess over $750,000

Over $1,500,000                       $ 89,405 plus 6.9% of                                       excess over $1,500,000.

          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 $ 75,000   $ 504.50 plus 4.9% of excess over $ 16,000

Over $ 75,000 but not over $250,000   $ 3,395.50 plus 5.4% of excess over $ 75,000

Over $250,000 but not over $500,000   $ 12,845.50 plus 5.9% of excess over $250,000

Over $500,000 but not over $1,000,000 $ 27,595.50 plus 6.4% of excess over $500,000

Over $1,000,000                       $ 59,595.50 plus 6.9% of                                       excess over $1,000,000.

          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."

     Section 2. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2010.

     Section 3. TEMPORARY PROVISION.--For the 2010 taxable year, a taxpayer is deemed to have complied with the provisions of Section 7-2-12.2 NMSA 1978 if the taxpayer has made the required annual payments of estimated taxes due for taxable year 2010 based on the provisions of the version of Section 7-2-7 NMSA 1978 applicable on January 1, 2008 through December 31, 2009.

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