HOUSE BILL 292

52nd legislature - STATE OF NEW MEXICO - second session, 2016

INTRODUCED BY

Antonio "Moe" Maestas

AN ACT

RELATING TO TAXATION; MODIFYING THE PERSONAL INCOME TAX BRACKETS AND 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] 2016:

          A. For married individuals filing separate returns:

     If the taxable income is:       The tax shall be:

Not over [$4,000] $15,000             [1.7%] 2% of taxable

                                      income

Over [$ 4,000] $15,000 but not       [$ 68.00] $300 plus

over [$ 8,000] $30,000               [3.2%] 3% of excess over                                       [$ 4,000] $15,000

Over [$ 8,000] $30,000 but not       [$ 196] $750 plus

over [$ 12,000] $45,000               [4.7%] 4% of excess over                                       [$ 8,000] $30,000

Over $ 45,000 but not over $75,000    $ 1,350 plus 5% of                                        excess over $ 45,000

Over [$ 12,000] $75,000               [$ 384] $2,850 plus [4.9%] 6% of excess over [$ 12,000] $75,000.

          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] $30,000             [1.7%] 2% of taxable                                       income

Over [$ 8,000] $30,000 but not       [$ 136] $600 plus

over [$ 16,000] $60,000               [3.2%] 3% of excess                                        over [$ 8,000] $30,000

Over [$ 16,000] $60,000 but not       [$ 392] $1,500 plus

over [$ 24,000] $90,000               [4.7%] 4% of excess over                                       [$ 16,000] $60,000

Over $90,000 but not over $150,000    $ 2,700 plus 5% of                                        excess over $90,000

Over [$ 24,000] $150,000              [$ 768] $5,700 plus [4.9%] 6% of excess over [$ 24,000] $150,000.

          C. For single individuals and for estates and trusts:

     If the taxable income is:       The tax shall be:

Not over [$5,500] $20,000             [1.7%] 2% of taxable                                       income

Over [$ 5,500] $20,000 but not      [$ 93.50] $400 plus

over [$ 11,000] $40,000               [3.2%] 3% of excess over                                       [$ 5,500] $20,000

Over [$ 11,000] $40,000 but not       [$ 269.50] $1,000 plus over [$ 16,000] $60,000               [4.7%] 4% of excess over                                       [$ 11,000] $40,000

Over $60,000 but not over $100,000    $ 1,800 plus 5% of                                        excess over $60,000 

Over [$ 16,000] $100,000              [$ 504.50] $3,800 plus [4.9%] 6% of excess over [$ 16,000] $100,000.

          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."