HOUSE BILL 119

50th legislature - STATE OF NEW MEXICO - first session, 2011

INTRODUCED BY

David C. Chavez

AN ACT

RELATING TO TAXATION; PROVIDING A PERSONAL INCOME TAX EXEMPTION FOR CERTAIN INDIVIDUALS SIXTY-FIVE YEARS OF AGE OR OVER.

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

     SECTION 1. Section 7-2-4 NMSA 1978 (being Laws 1965, Chapter 202, Section 4, as amended) is amended to read:

     "7-2-4. EXEMPTIONS.--No income tax shall be imposed upon:

          A. a trust organized or created in the United States and forming part of a stock bonus, pension or profit-sharing plan of an employer for the exclusive benefit of [his] the employer's employees or their beneficiaries, which trust is exempt from taxation under the provisions of the Internal Revenue Code; [or]

          B. religious, educational, benevolent or other organizations not organized for profit which are exempt from income taxation under the Internal Revenue Code except to the extent that such income is subject to federal income taxation as "unrelated business income" under the Internal Revenue Code; or

          C. individuals sixty-five years of age or over whose adjusted gross income for federal income tax purposes is seventy thousand dollars ($70,000) or less."

     SECTION 2. APPLICABILITY.--The provisions of this act are applicable to taxable years beginning on or after January 1, 2012.

     SECTION 3. EFFECTIVE DATE.--The effective date of the provisions of this act is January 1, 2012.

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