AN ACT
RELATING TO TAXATION; AMENDING AND
REPEALING SECTIONS OF THE INCOME TAX ACT.
BE IT ENACTED BY THE LEGISLATURE OF
THE STATE OF NEW MEXICO:
Section 1. Section 7-2-2 NMSA 1978 (being Laws 1986,
Chapter 20, Section 26, as amended) is amended to read:
"7-2-2. DEFINITIONS.--For the purpose of the Income
Tax Act and unless the context requires otherwise:
A. "adjusted gross income" means
adjusted gross income as defined in Section 62 of the Internal Revenue Code, as
that section may be amended or renumbered;
B. "base income":
(1) means, for estates and trusts, that part of
the estate's or trust's income defined as taxable income and upon which the
federal income tax is calculated in the Internal Revenue Code for income tax
purposes plus, for taxable years beginning on or after January 1, 1991, the
amount of the net operating loss deduction allowed by Section 172(a) of the
Internal Revenue Code, as that section may be amended or renumbered, and taken
by the taxpayer for that year;
(2) means, for taxpayers other than estates or
trusts, that part of the taxpayer's income defined as adjusted gross income
plus, for taxable years beginning on or after January 1, 1991, the amount of
the net operating loss deduction allowed by Section 172(a) of the Internal
Revenue Code, as that section may be amended or renumbered, and taken by the
taxpayer for that year;
(3) includes, for all taxpayers, any other income
of the taxpayer not included in adjusted gross income but upon which a federal
tax is calculated pursuant to the Internal Revenue Code for income tax
purposes, except amounts for which a calculation of tax is made pursuant to
Section 55 of the Internal Revenue Code, as that section may be amended or
renumbered; "base income" also includes interest received on a state
or local bond; and
(4) includes, for all taxpayers, an amount
deducted pursuant to Section 7-2-32 NMSA 1978 in a prior taxable year if:
(a) such amount is transferred to another
qualified tuition program, as defined in Section 529 of the Internal Revenue
Code, not authorized in the Education Trust Act; or
(b) a distribution or refund is made for any
reason other than: 1) to pay for
qualified higher education expenses, as defined pursuant to Section 529 of the
Internal Revenue Code; or 2) upon the beneficiary's death, disability or
receipt of a scholarship;
C. "compensation" means wages,
salaries, commissions and any other form of remuneration paid to employees for
personal services;
D. "department" means the taxation and
revenue department, the secretary of taxation and revenue or any employee of
the department exercising authority lawfully delegated to that employee by the
secretary;
E. "fiduciary" means a guardian,
trustee, executor, administrator, committee, conservator, receiver, individual
or corporation acting in any fiduciary capacity;
F. "filing status" means "married
filing joint returns", "married filing separate returns",
"head of household", "surviving spouse" and
"single", as those terms are generally defined for federal tax
purposes;
G. "fiscal year" means any accounting
period of twelve months ending on the last day of any month other than
December;
H. "head of household" means
"head of household" as generally defined for federal income tax
purposes;
I. "individual" means a natural
person, an estate, a trust or a fiduciary acting for a natural person, trust or
estate;
J. "Internal Revenue Code" means the
United States Internal Revenue Code of 1986, as amended;
K. "lump-sum amount" means for the
purpose of determining liability for federal income tax, an amount that was not
included in adjusted gross income but upon which the five-year-averaging or the
ten-year-averaging method of tax computation provided in Section 402 of the Internal
Revenue Code, as that section may be amended or renumbered, was applied;
L. "modified gross income" means all
income of the taxpayer and, if any, the taxpayer's spouse and dependents,
undiminished by losses and from whatever source, including:
(1) compensation;
(2) net profit from business;
(3) gains from dealings in property;
(4) interest;
(5) net rents;
(6) royalties;
(7) dividends;
(8) alimony and separate maintenance payments;
(9) annuities;
(10) income from life insurance and endowment
contracts;
(11) pensions;
(12) discharge of indebtedness;
(13) distributive share of partnership income;
(14) income in respect of a decedent;
(15) income from an interest in an estate or a
trust;
(16) social security benefits;
(17) unemployment compensation benefits;
(18) workers' compensation benefits;
(19) public assistance and welfare benefits;
(20) cost-of-living allowances; and
(21) gifts;
M. "modified gross income" excludes:
(1) payments for hospital, dental, medical or
drug expenses to or on behalf of the taxpayer;
(2) the value of room and board provided by
federal, state or local governments or by private individuals or agencies based
upon financial need and not as a form of compensation;
(3) payments pursuant to a federal, state or
local government program directly or indirectly to a third party on behalf of
the taxpayer when identified to a particular use or invoice by the payer; or
(4) payments pursuant to Sections
7-2-14, 7-2-18, 7-2-18.1 and 7-3-9
NMSA 1978;
N. "net income" means, for estates and
trusts, base income adjusted to exclude amounts that the state is prohibited
from taxing because of the laws or constitution of this state or the United
States and means, for taxpayers other than estates or trusts, base income
adjusted to exclude:
(1) an amount equal to the standard deduction
allowed the taxpayer for the taxpayer's taxable year by Section 63 of the
Internal Revenue Code, as that section may be amended or renumbered;
(2) an amount equal to the itemized deductions
defined in Section 63 of the Internal Revenue Code, as that section may be
amended or renumbered, allowed the taxpayer for the taxpayer's taxable year
less the amount excluded pursuant to Paragraph (1) of this subsection;
(3) an amount equal to the product of the
exemption amount allowed for the taxpayer's taxable year by Section 151 of the
Internal Revenue Code, as that section may be amended or renumbered, multiplied
by the number of personal exemptions allowed for federal income tax purposes;
(4) income from obligations of the United States
of America less expenses incurred to earn that income;
(5) other amounts that the state is prohibited
from taxing because of the laws or constitution of this state or the United
States;
(6) for taxable years that began prior to January
1, 1991, an amount equal to the sum of:
(a) net operating loss carryback deductions to
that year from taxable years beginning prior to January 1, 1991 claimed and
allowed, as provided by the Internal Revenue Code; and
(b) net operating loss carryover deductions to
that year claimed and allowed; and
(7) for taxable years beginning on or after
January 1, 1991, an amount equal to the sum of any net operating loss carryover
deductions to that year claimed and allowed, provided that the amount of any
net operating loss carryover from a taxable year beginning on or after January
1, 1991 may be excluded only as follows:
(a) in the case of a timely filed return, in the
taxable year immediately following the taxable year for which the return is
filed; or
(b) in the case of amended returns or original returns
not timely filed, in the first taxable year beginning after the date on which
the return or amended return establishing the net operating loss is filed; and
(c) in either case, if the net operating loss
carryover exceeds the amount of net income exclusive of the net operating loss
carryover for the taxable year to which the exclusion first applies, in the
next four succeeding taxable years in turn until the net operating loss
carryover is exhausted; in no event shall a net operating loss carryover be
excluded in any taxable year after the fourth taxable year beginning after the
taxable year to which the exclusion first applies;
O. "net operating loss" means any net
operating loss, as defined by Section 172(c) of the Internal Revenue Code, as
that section may be amended or renumbered, for a taxable year as further
increased by the income, if any, from obligations of the United States for that
year less related expenses;
P. "net operating loss carryover"
means the amount, or any portion of the amount, of a net operating loss for any
taxable year that, pursuant to Paragraph (6) or (7) of Subsection N of this
section, may be excluded from base income;
Q. "nonresident" means every
individual not a resident of this state;
R. "person" means any individual,
estate, trust, receiver, cooperative association, club, corporation, company,
firm, partnership, limited liability company, joint venture, syndicate or other
association; "person" also means, to the extent permitted by law, any
federal, state or other governmental unit or subdivision or agency, department
or instrumentality thereof;
S. "resident" means an individual who
is domiciled in this state during any part of the taxable year or an individual
who is physically present in this state for one hundred eighty-five days or
more during the taxable year; but any individual, other than someone who was
physically present in the state for one hundred eighty-five days or more during
the taxable year, who, on or before the last day of the taxable year, changed
his place of abode to a place without this state with the bona fide intention
of continuing actually to abide permanently without this state is not a
resident for the purposes of the Income Tax Act for periods after that change
of abode;
T. "secretary" means the secretary of
taxation and revenue or the secretary's delegate;
U. "state" means any state of the
United States, the District of Columbia, the commonwealth of Puerto Rico, any
territory or possession of the United States or any political subdivision of a
foreign country;
V. "state or local bond" means a bond
issued by a state other than New Mexico or by a local government other than one
of New Mexico's political subdivisions, the interest from which is excluded
from income for federal income tax purposes under Section 103 of the Internal
Revenue Code, as that section may be amended or renumbered;
W. "surviving spouse" means
"surviving spouse" as generally defined for federal income tax
purposes;
X. "taxable income" means net income
less any lump-sum amount;
Y. "taxable year" means the calendar
year or fiscal year upon the basis of which the net income is computed under
the Income Tax Act and includes, in the case of the return made for a
fractional part of a year under the provisions of the Income Tax Act, the
period for which the return is made; and
Z. "taxpayer" means any individual
subject to the tax imposed by the Income Tax Act."
Section 2. Section 7-2-12 NMSA 1978 (being Laws 1965,
Chapter 202, Section 10, as amended) is amended to read:
"7-2-12. TAXPAYER RETURNS--PAYMENT OF TAX.--
A. Every resident of this state and every
individual deriving income from any business transaction, property or
employment within this state and not exempt from tax under the Income Tax Act
who is required by the laws of the United States to file a federal income tax
return shall file a complete tax return with the department in form and content
as prescribed by the secretary. Except
as provided in Subsection B of this section, the return required and the tax
imposed on individuals under the Income Tax Act are due and payment is required
on or before the fifteenth day of the fourth month following the end of the
taxable year.
B. When the department approves electronic media
for use by a taxpayer whose taxable year is a calendar year, the taxpayer who
uses electronic media for both filing and payment must submit the required
return and the tax imposed on individuals under the Income Tax Act on or before
the thirtieth day of the fourth month following the end of the taxable
year."
Section 3. Section 7-2-12.2 NMSA 1978 (being Laws 1996,
Chapter 17, Section 1, as amended) is amended to read:
"7-2-12.2. ESTIMATED TAX DUE--PAYMENT OF ESTIMATED
TAX--PENALTY.--
A. Except as otherwise provided in this section,
every individual who is required to file an income tax return under the Income
Tax Act shall pay the required annual payment in installments through either
withholding or estimated tax payments.
B. For the purposes of this section:
(1) "required annual payment" means the
lesser of:
(a) ninety percent of the tax shown on the return
of the taxable year or, if no return is filed, ninety percent of the tax for
the taxable year; or
(b) one hundred percent of the tax shown on the
return for the preceding taxable year if the preceding taxable year was a
taxable year of twelve months and the taxpayer filed a New Mexico tax return
for that preceding taxable year; and
(2) "tax" means the tax imposed under
Section 7-2-3 NMSA 1978 less any amount allowed for applicable credits and
rebates provided by the Income Tax Act.
C. There shall be four required installments for
each taxable year. If a taxpayer is not
liable for estimated tax payments on March 31, but becomes liable for estimated
tax at some point after March 31, he must make estimated tax payments as
follows:
(1) if the taxpayer becomes required to pay
estimated tax after March 31 and before June 1, fifty percent of the required
annual payment must be paid on or before June 15, twenty-five percent on
September 15 and twenty-five percent on or before January 15 of the following
taxable year;
(2) if the taxpayer becomes required to pay
estimated tax after May 31, but before September 1, the taxpayer must pay
seventy-five percent of the required annual payment on or before September 15
and twenty-five percent on or before January 15 of the following taxable year;
and
(3) if the taxpayer becomes required to pay
estimated tax after August 31, the taxpayer must pay one hundred percent of the
required annual payment on or before January 15 of the following taxable year.
D. Except as otherwise provided in this section,
for taxpayers reporting on a calendar year basis, estimated payments of the
required annual payment are due on or before April 15, June 15 and September 15
of the taxable year and January 15 of the following taxable year. For taxpayers reporting on a fiscal year
other than a calendar year, the due dates for the installments are the
fifteenth day of the fourth, sixth and ninth months of the fiscal year and the
fifteenth day of the first month following the fiscal year.
E. A rancher or farmer who expects to receive at
least two-thirds of his gross income for the taxable year from ranching or
farming, or who has received at least two-thirds of his gross income for the
previous taxable year from ranching or farming, may:
(1) pay the required annual payment for the
taxable year in one installment on or before January 15 of the following
taxable year; or
(2) on or before March 1 of the following taxable
year, file a return for the taxable year and pay in full the amount computed on
the return as payable.
No penalty under Subsection G
of this section shall be imposed unless the rancher or farmer underpays his tax
by more than one-third. If a joint
return is filed, a rancher or farmer must consider his or her spouse's gross
income in determining whether at least two-thirds of gross income is from
ranching or farming.
F. For the purposes of this section, the amount
of tax deducted and withheld with respect to a taxpayer under the Withholding
Tax Act shall be deemed a payment of estimated tax. An equal part of the amount of withheld tax
shall be deemed paid on each due date for the applicable taxable year unless
the taxpayer establishes the dates on which all amounts were actually
withheld. In that case, the amounts withheld
shall be deemed payments of estimated tax on the dates on which the amounts
were actually withheld. The taxpayer may
apply the provisions of this subsection separately to wage withholding and any
other amounts withheld under the Withholding Tax Act.
G. Except as otherwise provided in this section,
in the case of an underpayment of the required annual payment by a taxpayer,
there shall be added to the tax a penalty determined by applying the rate
specified in Subsection B of Section 7-1-67 NMSA 1978 to the amount of the
underpayment for the period of the underpayment, provided:
(1) the amount of the underpayment shall be the
excess of the amount of the required annual payment over the amount, if any,
paid on or before the due date for the installment;
(2) the period of the underpayment runs from the
due date for the installment to whichever of the following dates is earlier:
(a) the fifteenth day of the fourth month
following the close of the taxable year; or
(b) with respect to any portion of the
underpayment, the date on which the portion was paid; and
(3) a payment of estimated tax shall be credited
against unpaid or underpaid installments in the order in which the installments
are required to be paid.
H. No penalty shall be imposed under Subsection
G of this section for any taxable year if:
(1) the difference between the following is less
than five hundred dollars ($500):
(a) the tax shown on the return for the taxable
year or, when no return is filed, the tax for the taxable year; and
(b) any amount withheld under the provisions of
the Withholding Tax Act for that taxpayer for that taxable year;
(2) the individual's preceding taxable year was a
taxable year of twelve months, the individual did not have a tax liability for
the preceding taxable year and the individual was a resident of New Mexico for
the entire taxable year;
(3) through either withholding or estimated tax
payments, the individual paid the required annual payment as defined in
Subsection B of this section; or
(4) the secretary determines that the
underpayment was not due to fraud, negligence or disregard of rules and
regulations.
I. If on or before January 31 of the following
taxable year the taxpayer files a return for the taxable year and pays in full
the amount computed on the return as payable, then no penalty under Subsection
G of this section shall be imposed on an underpayment of the fourth required
installment for the taxable year.
J. This section applies to taxable years of less
than twelve months and to taxpayers reporting on a fiscal year other than a
calendar year in the manner determined by regulation or instruction of the
secretary.
K. Except as otherwise provided in Subsection L
of this section, this section applies to any estate or trust.
L. This section does not apply to any trust that
is subject to the tax imposed by Section 511 of the Internal Revenue Code or that
is a private foundation. For a taxable
year that ends before the date two years after the date of the decedent's
death, this section does not apply to:
(1) the estate of the decedent; or
(2) any trust all of which was treated under
Subpart E of Part I of Subchapter J of Chapter 1 of the Internal Revenue Code
as owned by the decedent and to which the residue of the decedent's estate will
pass under the decedent's will or, if no will is admitted to probate, that is
the trust primarily responsible for paying debts, taxes and expenses of
administration.
M. The provisions of this section do not apply
to first-year residents."
Section 4. Section 7-2-14.3 NMSA 1978 (being Laws 1994,
Chapter 111, Section 1, as amended) is amended to read:
"7-2-14.3. TAX REBATE OF PART OF PROPERTY TAX DUE FROM
LOW-INCOME TAXPAYER--LOCAL OPTION--REFUND.--
A. The tax rebate provided by this section may
be claimed for the taxable year for which the return is filed by an individual
who:
(1) has his principal place of residence in a
county that has adopted an ordinance pursuant to Subsection G of this section;
(2) is not a dependent of another individual;
(3) files a return; and
(4) incurred a property tax liability on his
principal place of residence in the taxable year.
B. The tax rebate provided by this section shall
be allowed for any individual eligible to claim the refund pursuant to Subsection
A of this section and who:
(1) was not an inmate of a public institution for
more than six months during the taxable year;
(2) was physically present in New Mexico for at
least six months during the taxable year for which the rebate is claimed; and
(3) is eligible for the rebate as a low-income
property taxpayer in accordance with the provisions of Subsection D of this
section.
C. A husband and wife who file separate returns
for the taxable year in which they could have filed a joint return may each
claim only one-half of the tax rebate that would have been allowed on the joint
return.
D. As used in the table in this subsection,
"property tax liability" means the amount of property tax resulting
from the imposition of the county and municipal property tax operating
impositions on the net taxable value of the taxpayer's principal place of
residence calculated for the year for which the rebate is claimed. The tax rebate provided in this section is as
specified in the following table:
LOW-INCOME TAXPAYER'S PROPERTY TAX REBATE
TABLE
Taxpayer's
Modified Gross Income Property Tax
Rebate But Not
Over Over
$
0 $ 8,000 75% of property tax
liability
8,000
10,000 70% of
property tax liability
10,000
12,000 65% of
property tax liability
12,000
14,000 60% of
property tax liability
14,000
16,000 55% of
property tax liability
16,000
18,000 50% of
property tax liability
18,000
20,000 45% of
property tax liability
20,000
22,000 40% of
property tax liability
22,000
24,000 35% of
property tax liability.
E.
If a taxpayer's modified gross income is zero, the taxpayer may claim a
tax rebate in the amount shown in the first row of the table. The tax rebate provided for in this section
shall not exceed three hundred fifty dollars ($350) per return and, if a return
is filed separately that could have been filed jointly, the tax rebate shall
not exceed one hundred seventy-five dollars ($175). No tax rebate shall be allowed any taxpayer
whose modified gross income exceeds twenty-four thousand dollars ($24,000).
F.
The tax rebate provided for in this section may be deducted from the
taxpayer's New Mexico income tax liability for the taxable year. If the tax rebate exceeds the taxpayer's
income tax liability, the excess shall be refunded to the taxpayer.
G.
In January of every odd-numbered year in which a county does not have in
effect an ordinance adopted pursuant to this subsection, the board of county
commissioners of the county shall conduct a public hearing on the question of
whether the property tax rebate provided in this section benefiting low-income
property taxpayers in the county should be made available through adoption of a
county ordinance. Notice of the public
hearing shall be published once at least two weeks prior to the hearing date in
at least one newspaper of general circulation in the county and broadcast at
some time within the week before the hearing on at least one radio station with
substantial broadcasting coverage in the county. At the public hearing, the board shall take
action on the question and if a majority of the members elected votes to adopt
an ordinance, it shall be adopted no later than thirty days after the public
hearing.
H.
An ordinance adopted pursuant to Subsection G of this section shall
specify the taxable years to which it is applicable. The board of county commissioners adopting an
ordinance shall notify the department of the adoption of the ordinance and
furnish a copy of the ordinance to the department no later than September 1 of
the first taxable year to which the ordinance applies.
I.
No later than December 31 of the year immediately following the first
year in which the low-income taxpayer property tax rebate provided in the
Income Tax Act is in effect for a county, and no later than December 31 of each
year thereafter in which the tax rebate is in effect, the department shall
certify to the county the amount of the loss of income tax revenue to the state
for the previous taxable year attributable to the allowance of property tax
rebates to taxpayers of that county. The
county shall promptly pay the amount certified to the department. If a county fails to pay the amount certified
within thirty days of the date of certification, the department may enforce
collection of the amount by action against the county and may withhold from any
revenue distribution to the county, not dedicated or pledged, amounts up to the
amount certified.
J.
As used in this section, "principal place of residence" means
the dwelling owned and occupied by the taxpayer and so much of the land
surrounding it, not to exceed five acres, as is reasonably necessary for use of
the dwelling as a home and may consist of a part of a multidwelling or a
multipurpose building and a part of the land upon which it is built."
Section 5. Section 7-2-18 NMSA 1978 (being Laws 1977,
Chapter 196, Section 1, as amended) is amended to read:
"7-2-18. TAX REBATE OF PROPERTY TAX DUE THAT EXCEEDS
THE ELDERLY TAXPAYER'S MAXIMUM PROPERTY TAX LIABILITY--REFUND.--
A.
Any resident who has attained the age of sixty-five and files an
individual New Mexico income tax return and is not a dependent of another
individual may claim a tax rebate for the taxable year for which the return is
filed. The tax rebate shall be the
amount of property tax due on the resident's principal place of residence for
the taxable year that exceeds the property tax liability indicated by the table
in Subsection F or G, as appropriate, of this section, based upon the
taxpayer's modified gross income.
B.
Any resident otherwise qualified under this section who rents a
principal place of residence from another person may calculate the amount of
property tax due by multiplying the gross rent for the taxable year by six
percent. The tax rebate shall be the
amount of property tax due on the taxpayer's principal place of residence for
the taxable year that exceeds the property tax liability indicated by the table
in Subsection F or G, as appropriate, of this section, based upon the taxpayer's
modified gross income.
C.
As used in this section, "principal place of residence" means
the resident's dwelling, whether owned or rented, and so much of the land
surrounding it, not to exceed five acres, as is reasonably necessary for use of
the dwelling as a home and may consist of a part of a multidwelling or a
multipurpose building and a part of the land upon which it is built.
D.
No claim for the tax rebate provided in this section shall be allowed a
resident who was an inmate of a public institution for more than six months
during the taxable year or who was not physically present in New Mexico for at
least six months during the taxable year for which the tax rebate could be
claimed.
E.
A husband and wife who file separate returns for a taxable year in which
they could have filed a joint return may each claim only one-half of the tax
rebate that would have been allowed on a joint return.
F.
For taxpayers whose principal place of residence is in a county that
does not have in effect for the taxable year a resolution in accordance with
Subsection J of this section, the tax rebate provided for in this section may
be claimed in the amount of the property tax due each taxable year that exceeds
the amount shown as property tax liability in the following table:
ELDERLY HOMEOWNERS' MAXIMUM PROPERTY
TAX LIABILITY TABLE
Property Tax
Taxpayer's Modified Gross Income Liability
But Not
Over Over
$ 0 $
1,000 $20
1,000 2,000 25
2,000 3,000 30
3,000 4,000 35
4,000 5,000 40
5,000 6,000 45
6,000 7,000 50
7,000 8,000 55
8,000 9,000 60
9,000 10,000 75
10,000 11,000 90
11,000 12,000 105
12,000 13,000 120
13,000 14,000 135
14,000 15,000 150
15,000 16,000 180.
G.
For taxpayers whose principal place of residence is in a county that has
in effect for the taxable year a resolution in accordance with Subsection J of
this section, the tax rebate provided for in this section may be claimed in the
amount of the property tax due each taxable year that exceeds the amount shown
as property tax liability in the following table:
ELDERLY HOMEOWNERS' MAXIMUM PROPERTY
TAX LIABILITY TABLE
Property Tax
Taxpayer's Modified Gross Income Liability
But
Not
Over Over
$ 0 $
1,000 $
20
1,000 2,000 25
2,000 3,000 30
3,000 4,000 35
4,000 5,000 40
5,000 6,000 45
6,000 7,000 50
7,000 8,000 55
8,000 9,000 60
9,000 10,000 75
10,000 11,000 90
11,000 12,000 105
12,000 13,000 120
13,000 14,000 135
14,000 15,000 150
15,000 16,000 165
16,000 17,000 180
17,000 18,000 195
18,000 19,000 210
19,000 20,000 225
20,000 21,000 240
21,000 22,000 255
22,000 23,000 270
23,000 24,000 285
24,000 25,000 300.
H.
If a taxpayer's modified gross income is zero, the taxpayer may claim a
tax rebate based upon the amount shown in the first row of the appropriate
table. The tax rebate provided for in
this section shall not exceed two hundred fifty dollars ($250) per return, and,
if a return is filed separately that could have been filed jointly, the tax
rebate shall not exceed one hundred twenty-five dollars ($125). No tax rebate shall be allowed any taxpayer
whose modified gross income exceeds sixteen thousand dollars ($16,000) for
taxpayers whose principal place of residence is in a county that does not have
in effect for the taxable year a resolution in accordance with Subsection J of
this section and twenty-five thousand dollars ($25,000) for all other
taxpayers.
I.
The tax rebate provided for in this section may be deducted from the
taxpayer's New Mexico income tax liability for the taxable year. If the tax rebate exceeds the taxpayer's
income tax liability, the excess shall be refunded to the taxpayer.
J.
The board of county commissioners may adopt a resolution authorizing
otherwise qualified taxpayers whose principal place of residence is in the
county to claim the rebate provided by this section in the amounts set forth in
Subsection G of this section. The
resolution must also provide that the county will reimburse the state for the
additional amount of tax rebates paid to such taxpayers over the amount that
would have been paid to such taxpayers under Subsection F of this section. The resolution may apply to one or more
taxable years and shall specify the period of time for which the rebate
provided by this section may be claimed by qualified taxpayers. The county must adopt the resolution and
notify the department of the adoption by no later than September 1 of the
taxable year to which the resolution first applies. The department shall determine the additional
amounts paid to taxpayers of the county for each taxable year and shall bill the
county for the amount at the time and in the manner determined by the
department. If the county fails to pay
any bill within thirty days, the department may deduct the amount due from any
amount to be transferred or distributed to the county by the state, other than
debt interceptions."
Section 6. REPEAL.--Section 7-2-33 NMSA 1978 (being Laws
1997, Chapter 259, Section 9) is repealed.
Section 7. APPLICABILITY.--The provisions of this act
apply to the 2003 and subsequent taxable years.
HB
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