SENATE BILL 10

56th legislature - STATE OF NEW MEXICO - first session, 2023

INTRODUCED BY

Benny Shendo, Jr. and Peter Wirth and Christine Chandler and Javier Martínez

 

 

 

AN ACT

RELATING TO TAXATION; PROVIDING ADDITIONAL 2021 INCOME TAX REBATES; PROVIDING RELIEF PAYMENTS TO STATE RESIDENTS NOT ELIGIBLE FOR THE REBATES; MAKING APPROPRIATIONS; DECLARING AN EMERGENCY.

 

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] ADDITIONAL 2021 INCOME TAX REBATES.--

          A. A resident who files an individual New Mexico income tax return for taxable year 2021 and who is not a dependent of another individual is eligible for a tax rebate pursuant to this section in the following amounts:

                (1) one thousand five hundred dollars ($1,500) for heads of household, surviving spouses and married individuals filing joint returns; and

                (2) seven hundred fifty dollars ($750) for single individuals and married individuals filing separate returns.

          B. The rebates shall be made as soon as practicable after a return is received; provided that a rebate shall not be allowed for a return filed after May 31, 2024.

          C. The rebates provided by this section may be deducted from the taxpayer's New Mexico income tax liability for taxable year 2021. If the amount of rebate exceeds the taxpayer's income tax liability, the excess shall be refunded to the taxpayer.

          D. The department may require a taxpayer to claim a rebate provided by this section on forms and in a manner required by the department."

     SECTION 2. TEMPORARY PROVISION--RELIEF PAYMENT.--

          A. The human services department shall provide a relief payment to state residents on a first-come, first-served basis pursuant to this section until the appropriation pursuant to Subsection A of Section 3 of this act is exhausted; provided that the state residents:

                (1) are not eligible for a tax rebate provided by Section 1 of this act;

                (2) are not dependents, as that term is used in the Income Tax Act, of a recipient of a rebate provided by Section 1 of this act;

                (3) were at least eighteen years of age during any part of 2021; and

                (4) file an application with the department by May 31, 2024.

          B. For a resident who applies to the department by May 31, 2024, the relief payment shall be made as soon as practicable in the following amounts:

                (1) one thousand five hundred dollars ($1,500) for households of married couples or single individuals with one or more dependents; and

                (2) seven hundred fifty dollars ($750) for households of single individuals without dependents.

          C. A relief payment shall not be allowed for an application received after May 31, 2024.

          D. The human services department shall require a resident to apply for the relief provided by this section on forms and in a manner required by the department. The application shall include documentation of the resident's social security number or individual taxpayer identification number.

     SECTION 3. APPROPRIATIONS.--

          A. Thirty million dollars ($30,000,000) is appropriated from the general fund to the human services department for expenditure in fiscal years 2023 and 2024 to provide the relief payments pursuant to Section 2 of this act. Any unexpended or unencumbered balance remaining at the end of fiscal year 2024 shall revert to the general fund.

          B. Twenty-five thousand dollars ($25,000) is appropriated from the general fund to the human services department for expenditure in fiscal years 2023 and 2024 for reasonable technology and administrative costs necessary to implement the provisions of Section 2 of this act. Any unexpended or unencumbered balance remaining at the end of fiscal year 2024 shall revert to the general fund.

          C. Three hundred twenty thousand dollars ($320,000) is appropriated from the general fund to the taxation and revenue department for expenditure in fiscal years 2023 and 2024 for reasonable technology and administrative costs necessary to implement the provisions of Section 1 of this act and to assist the human services department with implementation of the provisions of Section 2 of this act. Any unexpended or unencumbered balance remaining at the end of fiscal year 2024 shall revert to the general fund.

          D. Four hundred twenty-two thousand dollars ($422,000) is appropriated from the general fund to the department of finance and administration for expenditure in fiscal years 2023 and 2024 for fiscal agent fees and administrative expenses necessary to implement the provisions of this act. Any unexpended or unencumbered balance remaining at the end of fiscal year 2024 shall revert to the general fund.

     SECTION 4. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.

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