0001|            SENATE WAYS AND MEANS COMMITTEE SUBSTITUTE FOR
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0002|                            SENATE BILL 53
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0003|     43rd legislature - STATE OF NEW MEXICO - second session, 1998
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0004|                                   
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0005|     
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0007|                                   
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0008|     
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0009|                                   
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0010|     
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0011|                                AN ACT
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0012|     RELATING TO TAXATION; ENACTING A TAX REBATE FOR GROSS RECEIPTS
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0013|     TAX PAID ON FOOD.
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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.  A new section of the Income Tax Act is
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0017|     enacted to read:
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0018|          "[NEW MATERIAL] TAX REBATE FOR GROSS RECEIPTS TAX ON
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0019|     FOOD--REFUND.--
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0020|               A.  Except as provided in Subsection C of this
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0021|     section, any resident who files an individual New Mexico
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0022|     income tax return for a taxable year beginning on or after
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0023|     January 1, 1998 and who is not a dependent of another
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0024|     individual may claim a tax rebate for a portion of gross
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0025|     receipts taxes on food purchases to which he has been subject
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<center>- 1 -</center>0001|     during the taxable year for which the return is filed.  The
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0002|     tax rebate may be claimed in an amount equal to seven dollars
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0003|     ($7.00) for each exemption allowable pursuant to Subsection E
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0004|     of this section.
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0005|               B.  The tax rebate provided for in this section may
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0006|     be deducted from the taxpayer's New Mexico income tax
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0007|     liability for the taxable year.  If the tax rebate exceeds the
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0008|     taxpayer's income tax liability, the excess shall be refunded
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0009|     to the taxpayer.
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0010|               C.  No claim for the tax rebate provided in this
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0011|     section shall be filed by a resident who was an inmate of a
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0012|     public institution for more than six months or who was not
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0013|     physically present in New Mexico for at least six months
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0014|     during the taxable year for which the tax rebate could be
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0015|     claimed.
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0016|               D.  A husband and wife who file separate returns
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0017|     for a taxable year in which they could filed a joint return
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0018|     may each claim only one-half of the tax rebate provided under
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0019|     this section that would have been allowed on a joint return.
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0020|               E.  For the purposes of this section, the total
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0021|     number of exemptions for which a tax rebate may be claimed or
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0022|     allowed is determined by adding the number of federal
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0023|     exemptions allowable for federal income tax purposes for each
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0024|     individual included in the return who is domiciled in New
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0025|     Mexico plus one exemption for each minor child or stepchild of
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<center>- 2 -</center>0001|     the resident who would be a dependent for federal income tax
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0002|     purposes if the public assistance contributing to the support of
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0003|     the child or stepchild was considered to have been contributed by
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0004|     the resident.
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0005|               F.  As used in this section, "dependent" means
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0006|     "dependent" as defined by Section 152 of the Internal Revenue
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0007|     Code of 1986, as that section may be amended or renumbered, but
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0008|     also includes any minor child or stepchild of the resident who
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0009|     would be a dependent for federal income tax purposes if the
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0010|     public assistance contributing to the support of the child or
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0011|     stepchild was considered to have been contributed by the
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0012|     resident."
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0013|          Section 2.  APPLICABILITY.--The provisions of this act
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0014|     apply to taxable years beginning on or after January 1, 1998.
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0015|                               
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