0001| HOUSE BILL 325
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0002| 43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998
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0003| INTRODUCED BY
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0004| FRANK BIRD
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0005|
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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; REDUCING INCOME TAX RATES.
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0012|
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0013| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0014| Section 1. Section 7-2-7 NMSA 1978 (being Laws 1994,
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0015| Chapter 5, Section 20) is amended to read:
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0016| "7-2-7. INDIVIDUAL INCOME TAX RATES.--The tax imposed by
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0017| Section 7-2-3 NMSA 1978 shall be at the following rates for
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0018| any taxable year beginning on or after January 1, [1996]
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0019| 1998:
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0020| A. For married individuals filing separate
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0021| returns:
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0022| If the taxable income is: The tax shall be:
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0023| [Not over $4,000 1.7% of taxable income
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Over $ 4,000 but not over $ 8,000 $ 68.00 plus 3.2% of
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excess over $ 4,000
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- 1 -
Over $ 8,000 but not over $ 12,000 $ 196 plus 4.7% of
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excess over $ 8,000
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Over $ 12,000 but not over $ 20,000 $ 384 plus 6.0% of
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excess over $ 12,000
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Over $ 20,000 but not over $ 32,000 $ 864 plus 7.1% of
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excess over $ 20,000
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Over $ 32,000 but not over $ 50,000 $ 1,716 plus 7.9% of
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excess over $ 32,000
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Over $ 50,000 $ 3,138 plus 8.5% of
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excess over $ 50,000]
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0011| Not over $2,500 $ 0
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0012| Over $2,500 but not over $12,000 3.0% of excess over
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0013| $2,500
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0014| Over $12,000 $285 plus 6.6% of the
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0015| excess over $12,000.
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0016| B. For surviving spouses and married individuals
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0017| filing joint returns:
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0018| If the taxable income is: The tax shall be:
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0019| [Not over $8,000 1.7% of taxable income
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Over $ 8,000 but not over $ 16,000 $ 136 plus 3.2% of
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excess over $ 8,000
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Over $ 16,000 but not over $ 24,000 $ 392 plus 4.7% of
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excess over $ 16,000
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Over $ 24,000 but not over $ 40,000 $ 768 plus 6.0% of
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excess over $ 24,000
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- 2 -
Over $ 40,000 but not over $ 64,000 $ 1,728 plus 7.1% of
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excess over $ 40,000
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Over $ 64,000 but not over $100,000 $ 3,432 plus 7.9% of
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excess over $ 64,000
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Over $100,000 $ 6,276 plus 8.5% of
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excess over $100,000]
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0007| Not over $5,000 $0
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0008| Over $5,000 but not over $24,000 3.0% of excess over
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0009| $5,000
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0010| Over $24,000 $570 plus 6.6% of
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0011| excess over $24,000.
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0012| C. For single individuals and for estates and
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0013| trusts:
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0014| If the taxable income is: The tax shall be:
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0015| [Not over $5,500 1.7% of taxable income
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Over $ 5,500 but not over $ 11,000 $ 93.50 plus 3.2% of
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excess over $ 5,500
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Over $ 11,000 but not over $ 16,000 $ 269.50 plus 4.7% of
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excess over $ 11,000
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Over $ 16,000 but not over $ 26,000 $ 504.50 plus 6.0% of
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excess over $ 16,000
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Over $ 26,000 but not over $ 42,000 $1,104.50 plus 7.1% of
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excess over $ 26,000
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Over $ 42,000 but not over $ 65,000 $2,240.50 plus 7.9% of
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excess over $ 42,000
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- 3 -
Over $ 65,000 $4,057.50 plus 8.5% of
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excess over $ 65,000]
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0003| Not over $2,500 $0
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0004| Over $2,500 but not over $16,000 3.0% of excess over
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0005| $2,500
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0006| Over $16,000 $405 plus 6.6% of
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0007| excess over $16,000.
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0008| D. For heads of household filing returns:
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0009| If the taxable income is: The tax shall be:
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0010| Not over $7,000 1.7% of taxable income
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0011| Over $ 7,000 but not over $ 14,000 $ 119 plus 3.2% of
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0012| excess over $ 7,000
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0013| Over $ 14,000 but not over $ 20,000 $ 343 plus 4.7% of
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0014| excess over $ 14,000
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0015| Over $ 20,000 but not over $ 33,000 $ 625 plus 6.0% of
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0016| excess over $ 20,000
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0017| Over $ 33,000 but not over $ 53,000 $1,405 plus 7.1% of
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0018| excess over $ 33,000
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0019| Over $ 53,000 but not over $ 83,000 $2,825 plus 7.9% of
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0020| excess over $ 53,000
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0021| Over $ 83,000 $5,195 plus 8.5% of
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0022| excess over $ 83,000]
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0023| Not over $4,000 $0
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0024| Over $4,000 but not over $20,000 3.0% of excess over
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0025| $4,000
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- 4 -
0001| Over $20,000 $480 plus 6.6% of
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0002| excess over $20,000.
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0003| E. The tax on the sum of any lump-sum amounts
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0004| included in net income is an amount equal to five multiplied by
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0005| the difference between:
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0006| (1) the amount of tax due on the taxpayer's
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0007| taxable income; and
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0008| (2) the amount of tax that would be due on an
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0009| amount equal to the taxpayer's taxable income and twenty percent
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0010| of the taxpayer's lump-sum amounts included in net income.
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0011| F. The maximum taxable income amount in the first
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0012| line of the table under Subsection A, B, C or D of this section
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0013| may be referred to as the "zero bracket amount" for that
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0014| table."
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0015| Section 2. Section 7-2-12 NMSA 1978 (being Laws 1965,
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0016| Chapter 202, Section 10, as amended) is amended to read:
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0017| "7-2-12. TAXPAYER RETURNS--PAYMENT OF TAX.--Every resident
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0018| of this state and every individual deriving income from any
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0019| business transaction, property or employment within this state
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0020| and who is not exempt from tax under the Income Tax Act who is
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0021| required by the laws of the United States to file a federal
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0022| income tax return and whose taxable income exceeds the zero
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0023| bracket amount for the individual's filing status shall file a
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0024| complete tax return with the department in form and content as
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0025| prescribed by the secretary. The return required and the tax
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- 5 -
0001| imposed on individuals under the Income Tax Act are due and
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0002| payment is required on or before the fifteenth day of the fourth
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0003| month following the end of the taxable year."
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0004| Section 3. APPLICABILITY.--The provisions of this act
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0005| apply to taxable years beginning on or after January 1, 1998.
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0006|
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