HOUSE BILL 572
50th legislature - STATE OF NEW MEXICO - first session, 2011
INTRODUCED BY
Miguel P. Garcia
AN ACT
RELATING TO TAXATION; RESTORING PROGRESSIVITY TO THE RATES OF INCOME TAX PAID PURSUANT TO THE INCOME TAX ACT.
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:
A. For any taxable year beginning on or after January 1, [2008] 2011:
[A.] (1) 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 $125,000 $ 384 plus 4.9% of excess over $ 12,000
Over $125,000 $5,921 plus 5.3% of
excess over $125,000.
[B.] (2) 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 $250,000 $ 768 plus 4.9% of excess over $ 24,000
Over $250,000 $11,842 plus 5.3% of
excess over $250,000.
[C.] (3) 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 $167,000 $ 504.50 plus 4.9% of excess over $ 16,000
Over $167,000 $7,903.50 plus 5.3% of
excess over $167,000.
B. For any taxable year beginning on or after January 1, 2012:
(1) 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 $125,000 $ 384 plus 4.9% of
excess over $ 12,000
Over $125,000 but not over $250,000 $5,921 plus 5.3% of
excess over $125,000
Over $250,000 $12,546 plus 6.0% of
excess over $250,000.
(2) 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 $250,000 $ 768 plus 4.9% of
excess over $ 24,000
Over $250,000 but not over $500,000 $11,842 plus 5.3% of
excess over $250,000
Over $500,000 $25,092 plus 6.0% of
excess over $500,000.
(3) 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 $167,000 $ 504.50 plus 4.9% of
excess over $ 16,000
Over $167,000 but not over $333,000 $7,903.50 plus 5.3% of
excess over $167,000
Over $333,000 $16,701.50 plus 6.0% of
excess over $333,000.
C. For any taxable year beginning on or after January 1, 2013:
(1) 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 $125,000 $ 384 plus 4.9% of
excess over $ 12,000
Over $125,000 but not over $250,000 $ 5,921 plus 5.3% of
excess over $125,000
Over $250,000 but not over $500,000 $ 12,546 plus 6.0% of
excess over $250,000
Over $500,000 $ 27,546 plus 6.8% of
excess over $500,000.
(2) 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 $250,000 $ 768 plus 4.9% of
excess over $ 24,000
Over $250,000 but not over $500,000 $ 11,842 plus 5.3% of
excess over $250,000
Over $500,000 but not over $1,000,000 $ 25,092 plus 6.0% of
excess over $500,000
Over $1,000,000 $ 55,092 plus 6.8% of
excess over $1,000,000.
(3) 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 $167,000 $ 504.50 plus 4.9% of
excess over $ 16,000
Over $167,000 but not over $333,000 $ 7,903.50 plus 5.3% of
excess over $167,000
Over $333,000 but not over $667,000 $ 16,701.50 plus 6.0% of
excess over $333,000
Over $667,000 $ 36,741.50 plus 6.8% of
excess over $667,000.
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. TEMPORARY PROVISION.--For the 2011 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 2011 based on the provisions of the version of Section 7-2-7 NMSA 1978 applicable on January 1, 2008 through December 31, 2010.
SECTION 3. APPLICABILITY.--The provisions of Section 1 of this act apply to taxable years beginning on or after January 1, 2011.
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