0001| AN ACT | 0002| RELATING TO TAXATION; EXPANDING ELIGIBILITY FOR THE LOCAL OPTION LOW- | 0003| INCOME PROPERTY TAX REBATE PURSUANT TO THE INCOME TAX ACT. | 0004| | 0005| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0006| Section 1. Section 7-2-14.3 NMSA 1978 (being Laws 1994, Chapter | 0007| 111, Section 1) is amended to read: | 0008| "7-2-14.3. TAX REBATE OF PART OF PROPERTY TAX DUE FROM LOW- | 0009| INCOME TAXPAYER--LOCAL OPTION--REFUND.-- | 0010| A. The tax rebate provided by this section may be claimed | 0011| for the taxable year for which the return is filed by an individual | 0012| who: | 0013| (1) has his principal place of residence in a county | 0014| that has adopted an ordinance pursuant to Subsection G of this | 0015| section; | 0016| (2) is not a dependent of another individual; | 0017| (3) files a return; and | 0018| (4) incurred a property tax liability on his | 0019| principal place of residence in the taxable year. | 0020| B. The tax rebate provided by this section shall be allowed | 0021| for any individual eligible to claim the refund pursuant to Subsection | 0022| A of this section and who: | 0023| (1) was not an inmate of a public institution for | 0024| more than six months during the taxable year; | 0025| (2) was physically present in New Mexico for at least | 0001| six months during the taxable year for which the rebate is claimed; | 0002| and | 0003| (3) is eligible for the rebate as a low-income | 0004| property taxpayer in accordance with the provisions of Subsection D of | 0005| this section. | 0006| C. A husband and wife who file separate returns for the | 0007| taxable year in which they could have filed a joint return may each | 0008| claim only one-half of the tax rebate that would have been allowed on | 0009| the joint return. | 0010| D. As used in the table in this subsection, "property tax | 0011| liability" means the amount of property tax resulting from the | 0012| imposition of the county and municipal property tax operating | 0013| impositions on the net taxable value of the taxpayer's principal place | 0014| of residence calculated for the year for which the rebate is claimed. | 0015| The tax rebate provided in this section is as specified in the | 0016| following table: | 0017| LOW-INCOME TAXPAYER'S PROPERTY TAX REBATE TABLE | 0018| Taxpayer's Modified Gross Income Property Tax Rebate | 0019| But Not | 0020| Over Over | 0021| $0 $8,000 75% of property tax liability | 0022| 8,000 10,000 70% of property tax liability | 0023| 10,000 12,000 65% of property tax liability | 0024| 12,000 14,000 60% of property tax liability | 0025| 14,000 16,000 55% of property tax liability | 0001| 16,000 18,000 50% of property tax liability | 0002| 18,000 20,000 45% of property tax liability | 0003| 20,000 22,000 40% of property tax liability | 0004| 22,000 24,000 35% of property tax liability. | 0005| E. If a taxpayer's modified gross income is zero, the | 0006| taxpayer may claim a tax rebate in the amount shown in the first row | 0007| of the table. The tax rebate provided for in this section shall not | 0008| exceed three hundred fifty dollars ($350) per return and, if a return | 0009| is filed separately that could have been filed jointly, the tax rebate | 0010| shall not exceed one hundred seventy-five dollars ($175). No tax | 0011| rebate shall be allowed any taxpayer whose modified gross income | 0012| exceeds twenty-four thousand dollars ($24,000). | 0013| F. The tax rebate provided for in this section may be | 0014| deducted from the taxpayer's New Mexico income tax liability for the | 0015| taxable year. If the tax rebate exceeds the taxpayer's income tax | 0016| liability, the excess shall be refunded to the taxpayer. | 0017| G. In January of every odd-numbered year in which a county | 0018| does not have in effect an ordinance adopted pursuant to this | 0019| subsection, the board of county commissioners of the county shall | 0020| conduct a public hearing on the question of whether the property tax | 0021| rebate provided in this section benefiting low-income property | 0022| taxpayers in the county should be made available through adoption of a | 0023| county ordinance. Notice of the public hearing shall be published | 0024| once at least two weeks prior to the hearing date in at least one | 0025| newspaper of general circulation in the county and broadcast at some | 0001| time within the week before the hearing on at least one radio station | 0002| with substantial broadcasting coverage in the county. At the public | 0003| hearing, the board shall take action on the question and if a majority | 0004| of the members elected votes to adopt an ordinance, it shall be | 0005| adopted no later than thirty days after the public hearing. | 0006| H. An ordinance adopted pursuant to Subsection G of this | 0007| section shall specify the first taxable year to which it is | 0008| applicable. The board of county commissioners adopting an ordinance | 0009| shall notify the department of the adoption of the ordinance and | 0010| furnish a copy of the ordinance to the department no later than | 0011| September 1 of the first taxable year to which the ordinance applies. | 0012| I. No later than July 1 of the year immediately following | 0013| the first year in which the low-income taxpayer property tax rebate | 0014| provided in the Income Tax Act is in effect for a county, and no later | 0015| than July 1 of each year thereafter in which the tax rebate is in | 0016| effect, the department shall certify to the county the amount of the | 0017| loss of income tax revenue to the state for the previous taxable year | 0018| attributable to the allowance of property tax rebates to taxpayers of | 0019| that county. The county shall promptly pay the amount certified to | 0020| the department. If a county fails to pay the amount certified within | 0021| thirty days of the date of certification, the department may enforce | 0022| collection of the amount by action against the county and may withhold | 0023| from any revenue distribution to the county, not dedicated or pledged, | 0024| amounts up to the amount certified. | 0025| J. As used in this section, "principal place of residence" | 0001| means the dwelling owned and occupied by the taxpayer and so much of | 0002| the land surrounding it, not to exceed five acres, as is reasonably | 0003| necessary for use of the dwelling as a home and may consist of a part | 0004| of a multidwelling or a multipurpose building and a part of the land | 0005| upon which it is built." | 0006| Section 2. APPLICABILITY.--The provisions of this act apply | 0007| to taxable years beginning on or after January 1, 1998. | 0008| |