0001| AN ACT | 0002| RELATING TO TAXATION; AMENDING SECTION 7-2-18 NMSA 1978 (BEING LAWS | 0003| 1977, CHAPTER 196, SECTION 1, AS AMENDED) TO AUTHORIZE COUNTIES TO | 0004| PROVIDE FOR AN EXPANDED TAX REBATE FOR PROPERTY TAX DUE FOR CERTAIN | 0005| TAXPAYERS SIXTY-FIVE YEARS OF AGE AND OLDER. | 0006| | 0007| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0008| Section 1. Section 7-2-18 NMSA 1978 (being Laws 1977, Chapter | 0009| 196, Section 1, as amended) is amended to read: | 0010| "7-2-18. TAX REBATE OF PROPERTY TAX DUE THAT EXCEEDS THE ELDERLY | 0011| TAXPAYER'S MAXIMUM PROPERTY TAX LIABILITY--REFUND.-- | 0012| A. Any resident who has attained the age of sixty-five and | 0013| files an individual New Mexico income tax return and is not a | 0014| dependent of another individual may claim a tax rebate for the taxable | 0015| year for which the return is filed. The tax rebate shall be the | 0016| amount of property tax due on the resident's principal place of | 0017| residence for the taxable year that exceeds the property tax liability | 0018| indicated by the table in Subsection F or G, as appropriate, of this | 0019| section, based upon the taxpayer's modified gross income. | 0020| B. Any resident otherwise qualified under this section who | 0021| rents a principal place of residence from another person may calculate | 0022| the amount of property tax due by multiplying the gross rent for the | 0023| taxable year by six percent. The tax rebate shall be the amount of | 0024| property tax due on the taxpayer's principal place of residence for | 0025| the taxable year that exceeds the property tax liability indicated by | 0001| the table in Subsection F or G, as appropriate, of this section, based | 0002| upon the taxpayer's modified gross income. | 0003| C. As used in this section, "principal place of residence" | 0004| means the resident's dwelling, whether owned or rented, and so much of | 0005| the land surrounding it, not to exceed five acres, as is reasonably | 0006| necessary for use of the dwelling as a home and may consist of a part | 0007| of a multi-dwelling or a multi-purpose building and a part of the land | 0008| upon which it is built. | 0009| D. No claim for the tax rebate provided in this section | 0010| shall be allowed a resident who was an inmate of a public institution | 0011| for more than six months during the taxable year or who was not | 0012| physically present in New Mexico for at least six months during the | 0013| taxable year for which the tax rebate could be claimed. | 0014| E. A husband and wife who file separate returns for a | 0015| taxable year in which they could have filed a joint return may each | 0016| claim only one-half of the tax rebate that would have been allowed on | 0017| a joint return. | 0018| F. For taxpayers whose principal place of residence is in a | 0019| county that does not have in effect for the taxable year a resolution | 0020| in accordance with Subsection J of this section, the tax rebate | 0021| provided for in this section may be claimed in the amount of the | 0022| property tax due each taxable year that exceeds the amount shown as | 0023| property tax liability in the following table: | 0024| ELDERLY HOMEOWNERS' MAXIMUM PROPERTY TAX LIABILITY TABLE | 0025| Property Tax | 0001| Taxpayer's Modified Gross Income Liability | 0002| But Not | 0003| Over Over | 0004| $ 0 $ 1,000 $20 | 0005| 1,000 2,000 25 | 0006| 2,000 3,000 30 | 0007| 3,000 4,000 35 | 0008| 4,000 5,000 40 | 0009| 5,000 6,000 45 | 0010| 6,000 7,000 50 | 0011| 7,000 8,000 55 | 0012| 8,000 9,000 60 | 0013| 9,000 10,000 75 | 0014| 10,000 11,000 90 | 0015| 11,000 12,000 105 | 0016| 12,000 13,000 120 | 0017| 13,000 14,000 135 | 0018| 15,000 16,000 180. | 0019| G. For taxpayers whose principal place of residence is in a | 0020| county that has in effect for the taxable year a resolution in | 0021| accordance with Subsection J of this section, the tax rebate provided | 0022| for in this section may be claimed in the amount of the property tax | 0023| due each taxable year that exceeds the amount shown as property tax | 0024| liability in the following table: | 0025| ELDERLY HOMEOWNERS' MAXIMUM PROPERTY TAX LIABILITY TABLE | 0001| Property Tax | 0002| Taxpayer's Modified Gross Income Liability | 0003| But Not | 0004| Over Over | 0005| $ 0 $ 1,000 $ 20 | 0006| 1,000 2,000 25 | 0007| 2,000 3,000 30 | 0008| 3,000 4,000 35 | 0009| 4,000 5,000 40 | 0010| 5,000 6,000 45 | 0011| 6,000 7,000 50 | 0012| 7,000 8,000 55 | 0013| 8,000 9,000 60 | 0014| 9,000 10,000 75 | 0015| 10,000 11,000 90 | 0016| 11,000 12,000 105 | 0017| 12,000 13,000 120 | 0018| 13,000 14,000 135 | 0019| 14,000 15,000 150 | 0020| 15,000 16,000 165 | 0021| 16,000 17,000 180 | 0022| 17,000 18,000 195 | 0023| 18,000 19,000 210 | 0024| 19,000 20,000 225 | 0025| 20,000 21,000 240 | 0001| 21,000 22,000 255 | 0002| 22,000 23,000 270 | 0003| 23,000 24,000 285 | 0004| 24,000 25,000 300. | 0005| H. If a taxpayer's modified gross income is zero, the | 0006| taxpayer may claim a tax rebate based upon the amount shown in the | 0007| first row of the appropriate table. The tax rebate provided for in | 0008| this section shall not exceed two hundred fifty dollars ($250) per | 0009| return, and, if a return is filed separately that could have been | 0010| filed jointly, the tax rebate shall not exceed one hundred twenty-five | 0011| dollars ($125). No tax rebate shall be allowed any taxpayer whose | 0012| modified gross income exceeds sixteen thousand dollars ($16,000) for | 0013| taxpayers whose principal place of residence is in a county that does | 0014| not have in effect for the taxable year a resolution in accordance | 0015| with Subsection J of this section and twenty-five thousand dollars | 0016| ($25,000) for all other taxpayers. | 0017| I. The tax rebate provided for in this section may be | 0018| deducted from the taxpayer's New Mexico income tax liability for the | 0019| taxable year. If the tax rebate exceeds the taxpayer's income tax | 0020| liability, the excess shall be refunded to the taxpayer. | 0021| J. The board of county commissioners may adopt a resolution | 0022| authorizing otherwise qualified taxpayers whose principal place of | 0023| residence is in the county to claim the rebate provided by this | 0024| section in the amounts set forth in Subsection G of this section. The | 0025| resolution must also provide that the county will reimburse the state | 0001| for the additional amount of tax rebates paid to such taxpayers over | 0002| the amount that would have been paid to such taxpayers under | 0003| Subsection F of this section. The resolution may apply to one or more | 0004| taxable years. The county must adopt the resolution and notify the | 0005| department of the adoption by no later than September 1 of the taxable | 0006| year to which the resolution first applies. The department shall | 0007| determine the additional amounts paid to taxpayers of the county for | 0008| each taxable year and shall bill the county for the amount at the time | 0009| and in the manner determined by the department. If the county fails | 0010| to pay any bill within thirty days, the department may deduct the | 0011| amount due from any amount to be transferred or distributed to the | 0012| county by the state, other than debt interceptions." | 0013| Section 2. APPLICABILITY.--The provisions of this act apply | 0014| to taxable years beginning on or after January 1, 1997. | 0015| |