SENATE BILL 56

56th legislature - STATE OF NEW MEXICO - second session, 2024

INTRODUCED BY

Harold Pope

 

 

 

 

 

AN ACT

RELATING TO TAXATION; REMOVING THE SUNSET DATE OF AN INCOME TAX EXEMPTION FOR ARMED FORCES RETIREMENT PAY; EXTENDING THE TAX EXEMPTION TO THE SURVIVING SPOUSE OF AN ARMED FORCES RETIREE.

 

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

     SECTION 1. Section 7-2-5.13 NMSA 1978 (being Laws 2022, Chapter 47, Section 6) is amended to read:

     "7-2-5.13. EXEMPTION--ARMED FORCES RETIREMENT PAY.--

          A. An individual who is an armed forces retiree or the surviving spouse of an armed forces retiree may claim an exemption in [the following amounts] an amount equal to thirty thousand dollars ($30,000) of [military] armed forces retirement pay includable, except for this exemption, in net income

                [(1) for taxable year 2022, ten thousand dollars ($10,000);

                (2) for taxable year 2023, twenty thousand dollars ($20,000); and

                (3) for taxable years 2024 through 2026, thirty thousand dollars ($30,000)].

          B. As used in this section, "armed forces retiree" means a former member of the armed forces of the United States who has qualified by years of service or disability to separate from military service with lifetime benefits."

     SECTION 2. EFFECTIVE DATE.--The effective date of the provisions of this act is January 1, 2025.

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