0001| HOUSE BILL 1235
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0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997
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0003| INTRODUCED BY
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0004| DELORES C. WRIGHT
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0006|
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0007|
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0008|
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0009|
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0010| AN ACT
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0011| RELATING TO TAXATION; AMENDING THE INCOME TAX ACT TO INCREASE,
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0012| INDEX AND EXPAND ELIGIBILITY FOR THE EXEMPTION FOR PERSONS WHO
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0013| ARE SIXTY-FIVE YEARS OF AGE AND OLDER OR BLIND.
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0014|
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0015| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0016| Section 1. Section 7-2-5.2 NMSA 1978 (being Laws 1985,
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0017| Chapter 114, Section 1, as amended) is amended to read:
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0018| "7-2-5.2. EXEMPTION--INCOME OF PERSONS SIXTY-FIVE AND
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0019| OLDER OR BLIND.--
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0020| A. Any individual sixty-five years of age or
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0021| older or who, for federal income tax purposes, is blind may
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0022| claim an exemption in an amount specified in [Subsections A
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through C of this section not to exceed eight thousand dollars
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($8,000)] Paragraphs (1) through (3) of this subsection as
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0025| adjusted pursuant to Subsections C and D of this section of
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0001| income includable except for this exemption in net income.
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0002| Individuals having income both within and without this state
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0003| shall apportion this exemption in accordance with regulations
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0004| of the secretary.
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0005| [A.] (1) For married individuals filing
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0006| separate returns, for any taxable year beginning [on or
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after] prior to January 1, [1987] 1997:
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0008| The maximum amount of
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0009| exemption allowable
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0010| If adjusted under this section shall
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0011| gross income is: be:
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0012| Not over $15,000 $8,000
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0013| Over $15,000 but not over $16,500 $7,000
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0014| Over $16,500 but not over $18,000 $6,000
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0015| Over $18,000 but not over $19,500 $5,000
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0016| Over $19,500 but not over $21,000 $4,000
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0017| Over $21,000 but not over $22,500 $3,000
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0018| Over $22,500 but not over $24,000 $2,000
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0019| Over $24,000 but not over $25,500 $1,000
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0020| Over $25,500 0.
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0021| [B.] (2) For heads of household, surviving
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0022| spouses and married individuals filing joint returns, for any
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0023| taxable year beginning [on or after] prior to January 1,
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0024| [1987] 1997:
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0025| The maximum amount of
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0001| exemption allowable
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0002| If adjusted under this section
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0003| gross income is: shall be:
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0004| Not over $30,000 $8,000
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0005| Over $30,000 but not over $33,000 $7,000
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0006| Over $33,000 but not over $36,000 $6,000
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0007| Over $36,000 but not over $39,000 $5,000
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0008| Over $39,000 but not over $42,000 $4,000
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0009| Over $42,000 but not over $45,000 $3,000
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0010| Over $45,000 but not over $48,000 $2,000
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0011| Over $48,000 but not over $51,000 $1,000
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0012| Over $51,000 0.
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0013| [C.] (3) For single individuals, for any taxable
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0014| year beginning [on or after] prior to January 1, [1987]
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0015| 1997:
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0016| The maximum amount of
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0017| exemption allowable
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0018| If adjusted under this section
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0019| gross income is: shall be:
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0020| Not over $18,000 $8,000
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0021| Over $18,000 but not over $19,500 $7,000
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0022| Over $19,500 but not over $21,000 $6,000
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0023| Over $21,000 but not over $22,500 $5,000
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0024| Over $22,500 but not over $24,000 $4,000
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0025| Over $24,000 but not over $25,500 $3,000
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0001| Over $25,500 but not over $27,000 $2,000
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0002| Over $27,000 but not over $28,500 $1,000
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0003| Over $28,500 0.
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0004| B. For taxable years beginning on or after January
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0005| 1, 1997, the secretary by regulation or instruction shall
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0006| prescribe inflation-adjusted tables for the exemption provided
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0007| in Subsection A of this section. The secretary shall determine
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0008| the inflation-adjusted tables for any taxable year by
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0009| multiplying the minimum and maximum dollar amounts and
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0010| allowable exemption amount for each rate bracket in Paragraphs
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0011| (1) through (3) of Subsection A of this section by the cost-of-
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0012| living adjustment calculated for the taxable year pursuant to
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0013| Subsection C of this section. The secretary shall round down
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0014| each adjusted bracket and exemption amount to the nearest
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0015| multiple of twenty-five dollars ($25.00) in the table in
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0016| Paragraph (1) of Subsection A of this section and fifty dollars
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0017| ($50.00) in the tables in Paragraphs (2) and (3) of Subsection
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0018| A of this section.
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0019| C. The cost-of-living adjustment for the taxable
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0020| year shall be:
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0021| (1) for taxable years beginning in calendar
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0022| year 1997, a fraction, the numerator of which is the consumer
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0023| price index for August 1990 and the denominator of which is the
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0024| consumer price index for August 1987;
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0025| (2) for taxable years beginning in calendar
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0001| year 1998, a fraction, the numerator of which is the consumer
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0002| price index for August 1994 and the denominator of which is the
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0003| consumer price index for August 1990;
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0004| (3) for taxable years beginning in calendar
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0005| year 1999, a fraction, the numerator of which is the consumer
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0006| price index for August 1998 and the denominator of which is the
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0007| consumer price index for August 1994; and
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0008| (4) for taxable years beginning in calendar
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0009| years after 1999, a fraction, the numerator of which is the
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0010| consumer price index for August of the calendar year prior to
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0011| the taxable year and the denominator of which is the consumer
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0012| price index for the August of the calendar year prior to that
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0013| calendar year. If the cost-of-living adjustment determined
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0014| pursuant to this paragraph is less than one for any taxable
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0015| year, the secretary shall prescribe the rate table for the
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0016| prior taxable year for that taxable year.
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0017| D. As used in this section, "consumer price index"
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0018| means the consumer price index for all-urban consumers
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0019| published by the United States department of labor."
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0020| Section 2. APPLICABILITY.--The provisions of this act
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0021| apply to taxable years on or after January 1, 1997.
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0022|
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