HOUSE BILL 305
50th legislature - STATE OF NEW MEXICO - second session, 2012
INTRODUCED BY
Antonio "Moe" Maestas
AN ACT
RELATING TO TAXATION; ADJUSTING THE RATES OF INCOME TAX PAID PURSUANT TO THE INCOME TAX ACT; REDUCING THE GROSS RECEIPTS TAX RATE.
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] 2013:
A. For married individuals filing separate returns:
If the taxable income is: The tax shall be:
Not over [$4,000] $9,000 [1.7%] 2.0% of taxable income
Over [$ 4,000] $9,000 but not
over [$ 8,000] $18,000 [$ 68.00] $180 plus [3.2%] 3.0% of excess
over [$ 4,000] $9,000
Over [$ 8,000] $18,000 but not
over [$ 12,000] $36,000 [$ 196] $450 plus [4.7%] 4.0% of excess over
[$ 8,000] $18,000
Over [$ 12,000] $36,000 but not
over $72,000 [$ 384] $1,170 plus [4.9%] 5.0% of excess over [$ 12,000] $36,000
Over $72,000 but not over $187,500 $ 2,970 plus 6.0% of
excess over $ 72,000
Over $187,500 but not over $750,000 $ 9,900 plus 7.0% of
excess over $ 187,500
Over $750,000 $ 49,275 plus 8.0% of
excess over $750,000.
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] $18,000 [1.7%] 2.0% of taxable income
Over [$ 8,000] $18,000 but not
over [$ 16,000] $36,000 [$ 136] $360 plus [3.2%] 3.0% of excess over
[$ 8,000] $18,000
Over [$ 16,000] $36,000 but
not over [$ 24,000] $72,000 [$ 392] $900 plus [4.7%] 4.0% of excess over
[$ 16,000] $36,000
Over [$ 24,000] $72,000 but not
over $144,000 [$ 768] $2,340 plus [4.9%] 5.0% of excess over [$ 24,000] $72,000
Over $144,000 but not over $375,000 $ 5,940 plus 6.0% of
excess over $ 144,000
Over $375,000 but not over $1,500,000 $ 19,800 plus 7.0% of
excess over $ 375,000
Over $1,500,000 $ 98,550 plus 8.0% of
excess over $ 1,500,000.
C. For single individuals and for estates and trusts:
If the taxable income is: The tax shall be:
Not over [$5,500] $12,000 [1.7%] 2.0% of taxable income
Over [$ 5,500] $12,000 but not [$ 93.50] $240 plus
over [$ 11,000] $24,000 [3.2%] 3.0% of excess
over [$ 5,500] $12,000
Over [$ 11,000] $24,000 but not
over [$ 16,000] $48,000 [$ 269.50] $600 plus [4.7%] 4.0% of excess over [$ 11,000] $24,000
Over [$ 16,000] $48,000 but not [$ 504.50] $1,560 plus
over $72,000 [4.9%] 5.0% of excess over [$ 16,000] $48,000
Over $72,000 but not over $150,000 $ 2,760 plus 6.0% of
excess over $72,000
Over $150,000 but not over $1,000,000 $ 7,440 plus 7.0% of
excess over $150,000
Over $1,000,000 $ 66,940 plus 8.0% of
excess over $1,000,000.
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."
SECTION 2. Section 7-9-4 NMSA 1978 (being Laws 1966, Chapter 47, Section 4, as amended) is amended to read:
"7-9-4. IMPOSITION AND RATE OF TAX--DENOMINATION AS "GROSS RECEIPTS TAX".--
A. For the privilege of engaging in business, an excise tax equal to [five] four and one-eighth percent of gross receipts is imposed on any person engaging in business in New Mexico.
B. The tax imposed by this section shall be referred to as the "gross receipts tax"."
SECTION 3. APPLICABILITY.--The provisions of Section 1 of this act apply to taxable years beginning on or after January 1, 2013.
SECTION 4. EFFECTIVE DATE.--The effective date of the provisions of this act is January 1, 2013.
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