45th legislature - STATE OF NEW MEXICO - first extraordinary session, 2002

RELATING TO TAXATION; REDUCING PERSONAL INCOME TAX RATES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. Section 7-2-7 NMSA 1978 (being Laws 1994, Chapter 5, Section 20, as amended) is amended to read:

"7-2-7. INDIVIDUAL INCOME TAX RATES.--The tax imposed by
Section 7-2-3 NMSA 1978 shall be at the following rates for
any taxable year beginning on or after January 1, [~~1998~~] __2002__:

A. For married individuals filing separate returns:

If the taxable income is: The tax shall be:

[~~Not over $4,000~~ ~~1.7% of taxable income~~

~~Over $ 4,000 but not over $ 8,000 $ 68.00 plus 3.2% of~~ ~~excess over $ 4,000~~

~~Over $ 8,000 but not over $ 12,000 $ 196 plus 4.7% of~~ ~~excess over $ 8,000~~

~~Over $ 12,000 but not over $ 20,000 $ 384 plus 6.0% of excess
over $ 12,000~~

~~Over $ 20,000 but not over $ 32,000 $ 864 plus 7.1% of excess
over $ 20,000~~

~~Over $ 32,000 but not over $ 50,000 $ 1,716 plus 7.9% of~~ ~~excess over $ 32,000~~

~~Over $ 50,000~~ ~~$ 3,138 plus 8.2% of~~ ~~excess over $ 50,000.~~]

__Not over $4,000__ __1.6% of taxable income__

__Over $ 4,000 but not over $ 8,000__ __$ 64.00 plus 3.1% of__ __excess over $ 4,000__

__Over $ 8,000 but not over $ 12,000__ __$ 188 plus 4.6% of__ __excess over $ 8,000__

__Over $ 12,000 but not over $ 20,000__ __$ 372 plus 5.8% of__ __excess over $ 12,000__

__Over $ 20,000 but not over $ 32,000__ __$ 836 plus 7.0% of__ __excess over $ 20,000__

__Over $ 32,000 but not over $ 50,000__ __$ 1,676 plus 7.7% of__ __ excess over $ 32,000__

__Over $ 50,000__ __$ 3,062 plus 7.9% of__ __excess over $ 50,000.__

B. For surviving spouses and married individuals filing joint returns:

If the taxable income is: The tax shall be:

[~~Not over $8,000~~ ~~1.7% of taxable income~~

~~Over $ 8,000 but not over $ 16,000 $ 136 plus 3.2% of~~ ~~excess over $ 8,000~~

~~Over $ 16,000 but not over $ 24,000 $ 392 plus 4.7% of~~ ~~excess over $ 16,000~~

~~Over $ 24,000 but not over $ 40,000 $ 768 plus 6.0% of~~ ~~excess over $ 24,000~~

~~Over $ 40,000 but not over $ 64,000 $ 1,728 plus 7.1% of~~ ~~excess over $ 40,000~~

~~Over $ 64,000 but not over $100,000 $ 3,432 plus 7.9% of~~ ~~excess over $ 64,000~~

~~Over $100,000~~ ~~$ 6,276 plus 8.2% of~~

~~excess over $100,000.~~]

__Not over $8,000__ __1.6% of taxable income__

__Over $ 8,000 but not over $ 16,000__ __$ 128 plus 3.1% of__ __excess over $ 8,000__

__Over $ 16,000 but not over $ 24,000__ __$ 376 plus 4.6% of__ __excess over $ 16,000__

__Over $ 24,000 but not over $ 40,000__ __$ 744 plus 5.8% of__ __excess over $ 24,000__

__Over $ 40,000 but not over $ 64,000__ __$ 1,672 plus 7.0% of__ __excess over $ 40,000__

__Over $ 64,000 but not over $100,000__ __$ 3,352 plus 7.7% of__ __excess over $ 64,000__

__Over $100,000__ __$ 6,124 plus 7.9% of__ __excess over $100,000.__

C. For single individuals and for estates and trusts:

If the taxable income is: The tax shall be:

[~~Not over $5,500~~ ~~1.7% of taxable income~~

~~Over $ 5,500 but not over $ 11,000 $ 93.50 plus 3.2% of~~ ~~excess over $ 5,500~~

~~Over $ 11,000 but not over $ 16,000 $ 269.50 plus 4.7% of~~ ~~excess over $ 11,000~~

~~Over $ 16,000 but not over $ 26,000 $ 504.50 plus 6.0% of~~ ~~excess over $ 16,000~~

~~Over $ 26,000 but not over $ 42,000 $1,104.50 plus 7.1% of~~ ~~excess over $ 26,000~~

~~Over $ 42,000 but not over $ 65,000 $2,240.50 plus 7.9% of~~ ~~excess over $ 42,000~~

~~ Over $ 65,000~~ ~~$4,057.50 plus 8.2% of~~

~~excess over $ 65,000.~~]

__Not over $5,500__ __1.6% of taxable income__

__Over $ 5,500 but not over $ 11,000 $ 88.00 plus 3.1% of__ __excess over $ 5,500__

__Over $ 11,000 but not over $ 16,000__ __$ 258.50 plus 4.6% of__ __excess over $ 11,000__

__Over $ 16,000 but not over $ 26,000__ __$ 488.50 plus 5.8% of__ __excess over $ 16,000__

__Over $ 26,000 but not over $ 42,000__ __$1,068.50 plus 7.0% of__ __excess over $ 26,000__

__Over $ 42,000 but not over $ 65,000__ __$2,188.50 plus 7.7% of__ __ excess over $ 42,000__

__Over $ 65,000__ __$3,959.50 plus 7.9% of__ __excess over $ 65,000.__

D. For heads of household filing returns:

If the taxable income is: The tax shall be:

[~~Not over $7,000~~ ~~1.7% of taxable income~~

~~Over $ 7,000 but not over $ 14,000 $ 119 plus 3.2% of~~

~~excess over $ 7,000~~

~~Over $ 14,000 but not over $ 20,000 $ 343 plus 4.7% of~~

~~excess over $ 14,000~~

~~Over $ 20,000 but not over $ 33,000 $ 625 plus 6.0% of~~

~~excess over $ 20,000~~

~~Over $ 33,000 but not over $ 53,000 $1,405 plus 7.1% of~~

~~excess over $ 33,000~~

~~Over $ 53,000 but not over $ 83,000 $2,825 plus 7.9% of~~

~~excess over $ 53,000~~

~~ Over $ 83,000~~ ~~$5,195 plus 8.2% of~~
~~excess over $ 83,000.~~]

__Not over $7,000__ __1.6% of taxable income__

__Over $ 7,000 but not over $ 14,000__ __$ 112 plus 3.1% of__

__excess over $ 7,000__

__Over $ 14,000 but not over $ 20,000__ __$ 329 plus 4.6% of__

__excess over $ 14,000__

__Over $ 20,000 but not over $ 33,000__ __$ 605 plus 5.8% of__

__ excess over $ 20,000__

__Over $ 33,000 but not over $ 53,000__ __$1,359 plus 7.0% of__

__excess over $ 33,000__

__Over $ 53,000 but not over $ 83,000__ __$2,759 plus 7.7% of__

__excess over $ 53,000__

__Over $ 83,000__ __$5,069 plus 7.9% of__

__excess over $ 83,000.__

E. The tax on the sum of any lump-sum amounts included in net income is an amount equal to five multiplied by the difference between:

(1) the amount of tax due on the taxpayer's taxable income; and

(2) the amount of tax that would be due on an amount equal to the taxpayer's taxable income and twenty percent of the taxpayer's lump-sum amounts included in net income."

Section 2. APPLICABILITY.--The provisions of this act apply to taxable years beginning on or after January 1, 2002.