HOUSE BILL 174

55th legislature - STATE OF NEW MEXICO - first session, 2021

INTRODUCED BY

Phelps Anderson

 

 

 

 

 

AN ACT

RELATING TO TAXATION; DOUBLING AN INCOME TAX EXEMPTION FOR LOW-INCOME PERSONS WHO ARE SIXTY-FIVE YEARS OF AGE AND OLDER OR WHO ARE BLIND.

 

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

     SECTION 1. Section 7-2-5.2 NMSA 1978 (being Laws 1985, Chapter 114, Section 1, as amended) is amended to read:

     "7-2-5.2. EXEMPTION--INCOME OF PERSONS SIXTY-FIVE AND OLDER OR BLIND.--For taxable years beginning on or after January 1, 2021, any individual sixty-five years of age or older or who, for federal income tax purposes, is blind may claim an exemption in an amount specified in Subsections A through C of this section not to exceed [eight thousand dollars ($8,000)] sixteen thousand dollars ($16,000) of income includable except for this exemption in net income. Individuals having income both within and without this state shall apportion this exemption in accordance with regulations of the secretary.

          A. For married individuals filing separate returns [for any taxable year beginning on or after January 1, 1987]:

                                      The maximum amount of

If adjusted                           exemption allowable under

gross income is:                       this section shall be:

Not over $15,000                                [$8,000] $16,000

Over $15,000 but not over $16,500               [$7,000] $14,000

Over $16,500 but not over $18,000               [$6,000] $12,000

Over $18,000 but not over $19,500               [$5,000] $10,000

Over $19,500 but not over $21,000               [$4,000] $8,000

Over $21,000 but not over $22,500               [$3,000] $6,000

Over $22,500 but not over $24,000               [$2,000] $4,000

Over $24,000 but not over $25,500               [$1,000] $2,000

Over $25,500                                     0.

          B. For heads of household, surviving spouses and married individuals filing joint returns [for any taxable year beginning on or after January 1, 1987]:

                                      The maximum amount of

If adjusted                           exemption allowable under

gross income is:                       this section shall be:

Not over $30,000                                [$8,000] $16,000

Over $30,000 but not over $33,000               [$7,000] $14,000

Over $33,000 but not over $36,000               [$6,000] $12,000

Over $36,000 but not over $39,000               [$5,000] $10,000

Over $39,000 but not over $42,000               [$4,000] $8,000

Over $42,000 but not over $45,000               [$3,000] $6,000

Over $45,000 but not over $48,000               [$2,000] $4,000

Over $48,000 but not over $51,000               [$1,000] $2,000

Over $51,000                                     0.

          C. For single individuals [for any taxable year beginning on or after January 1, 1987]:

                                      The maximum amount of

If adjusted                           exemption allowable under

gross income is:                       this section shall be:

Not over $18,000                                [$8,000] $16,000

Over $18,000 but not over $19,500               [$7,000] $14,000

Over $19,500 but not over $21,000               [$6,000] $12,000

Over $21,000 but not over $22,500               [$5,000] $10,000

Over $22,500 but not over $24,000               [$4,000] $8,000

Over $24,000 but not over $25,500               [$3,000] $6,000

Over $25,500 but not over $27,000               [$2,000] $4,000

Over $27,000 but not over $28,500               [$1,000] $2,000

Over $28,500                                     0."

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