SENATE BILL 65

49th legislature - STATE OF NEW MEXICO - second session, 2010

INTRODUCED BY

Gerald Ortiz y Pino

AN ACT

RELATING TO TAXATION; ADJUSTING INDIVIDUAL 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 2005, Chapter 104, Section 4) 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, [2008] 2010:

          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 $41,000    $ 384 plus [4.9%] 5.2% of excess over $ 12,000

Over $41,000 but not over $70,000     $1,892 plus 5.8% of

                                      excess over $41,000

Over $70,000 but not over $100,000    $3,574 plus 6.3% of

                                      excess over $70,000

Over $100,000 but not over $250,000   $ 5,464 plus 6.8% of excess over $100,000 

Over $250,000 but not over $500,000   $15,664 plus 7.7% of excess over $250,000

Over $500,000                         $34,914 plus 8.2% of excess over $500,000.

          B. For heads of household, 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 $82,000    $ 768 plus [4.9%] 5.2% of excess over $ 24,000

Over $82,000 but not over $140,000    $3,784 plus 5.8% of

                                      excess over $82,000

Over $140,000 but not over $200,000   $7,148 plus 6.3% of

                                      excess over $140,000

Over $200,000 but not over $500,000   $10,928 plus 6.8% of excess over $200,000

Over $500,000 but not over $1,000,000 $31,328 plus 7.7% of excess over $500,000

Over $1,000,000                       $69,828 plus 8.2% of excess over $1,000,000.

          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 $55,000    $ 504.50 plus [4.9%] 5.2% of excess over

                                      $ 16,000

Over $55,000 but not over $93,000     $2,533 plus 5.8% of

                                      excess over $55,000

Over $93,000 but not over $133,000    $4,737 plus 6.3% of

                                      excess over $93,000

Over $133,000 but not over $333,000   $7,257 plus 6.8% of excess over $133,000

Over $333,000 but not over $667,000   $20,857 plus 7.7% of excess over $333,000

Over $667,000                         $46,575 plus 8.2% of

                                      excess over $667,000.

          D. 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."

- 4 -