SENATE BILL 117

57th legislature - STATE OF NEW MEXICO - second session, 2026

INTRODUCED BY

Jay C. Block and Anthony L. Thornton

 

 

 

 

 

AN ACT

RELATING TO TAXATION; PROVIDING AN INCOME TAX EXEMPTION FOR SALARIES PAID BY THE UNITED STATES FOR SERVICE IN THE UNIFORMED SERVICES.

 

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

     SECTION 1. Section 7-2-5.11 NMSA 1978 (being Laws 2007, Chapter 45, Section 11) is amended to read:

     "7-2-5.11. EXEMPTION--[ARMED FORCES] UNIFORMED SERVICE SALARIES.--

          A. A salary paid by the United States to a taxpayer for [active duty] service in the [armed forces] uniformed services of the United States is exempt from state income taxation.

          B. A taxpayer allowed an exemption pursuant to this section shall report the amount of the exemption to the department in a manner required by the department.

          C. The exemption provided by this section shall be included in the tax expenditure budget pursuant to Section 7-1-84 NMSA 1978, including the annual aggregate cost of the exemption.

          D. As used in this section, "uniformed service" means:

                (1) active and reserve components of the army, navy, air force, space force, marine corps or coast guard of the United States;

                (2) the United States merchant marine;

                (3) the commissioned corps of the United States public health service;

                (4) the commissioned corps of the national oceanic and atmospheric administration of the United States; or

                (5) the national guard of a state."

     SECTION 2. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2026.

- 2 -