SENATE BILL 169
54th legislature - STATE OF NEW MEXICO - second session, 2020
William F. Burt
FOR THE MILITARY AND VETERANS' AFFAIRS COMMITTEE
RELATING TO TAXATION; PROVIDING AN INCOME TAX DEDUCTION FOR CERTAIN UNIFORMED SERVICES RETIREES AND THEIR SPOUSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. A new section of the Income Tax Act is enacted to read:
"[NEW MATERIAL] DEDUCTION--UNIFORMED SERVICES RETIREE INCOME.--
A. A taxpayer who is not a dependent of another individual and is a uniformed services retiree or the retiree's surviving spouse or the spouse of a uniformed services member who was killed in the line of duty while serving in the uniformed services may claim a deduction from net income in the following percentages of military retirement income that the uniformed services retiree or the retiree's surviving spouse received in a taxable year:
(1) for a taxable year beginning on or after January 1, 2021 and prior to January 1, 2022, thirty-three percent, not to exceed sixteen thousand three hundred thirty-three dollars ($16,333);
(2) for a taxable year beginning on or after January 1, 2022 and prior to January 1, 2023, sixty-six percent, not to exceed thirty-three thousand six hundred sixty-six dollars ($33,666); and
(3) for a taxable year beginning on or after January 1, 2023, one hundred percent, not to exceed fifty thousand dollars ($50,000).
B. To claim a deduction pursuant to this section, a taxpayer shall submit to the department information required by the secretary establishing that the taxpayer is eligible to claim a deduction pursuant to this section.
C. A taxpayer allowed a deduction pursuant to this section shall report the amount of the deduction to the department in a manner required by the department.
D. The department shall compile an annual report on the deduction provided by this section that shall include the number of taxpayers that claimed the deduction, the aggregate amount of deductions claimed and any other information necessary to evaluate the effectiveness of the deduction. The department shall present the annual report to the revenue stabilization and tax policy committee and the legislative finance committee with an analysis of the effectiveness and cost of the deduction and whether the deduction is performing the purpose for which it was created.
E. As used in this section:
(1) "uniformed services" means the army, navy, air force, marine corps, coast guard, army reserve, navy reserve, air force reserve, marine corps reserve, coast guard reserve, army national guard, air national guard, United States public health service commissioned corps and the national oceanic and atmospheric administration commissioned officer corps; and
(2) "uniformed services retiree" means a former member of the uniformed services of the United States who has qualified by years of service or disability to separate from military service with lifetime benefits."
SECTION 2. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2021.
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