SENATE BILL 89

55th legislature - STATE OF NEW MEXICO - first session, 2021

INTRODUCED BY

Bill Tallman

 

 

 

 

 

AN ACT

RELATING TO TAXATION; AMENDING THE PERSONAL INCOME TAX BRACKETS; REPEALING AN OUTDATED SECTION OF THE NMSA 1978.

 

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 Section 7-2-7 NMSA 1978 (being Laws 2005, Chapter 104, Section 4) is repealed and a new Section 7-2-7 NMSA 1978 is enacted to read:

         "7-2-7. [NEW MATERIAL] INDIVIDUAL INCOME TAX RATES.--

                   A. The tax imposed by Section 7-2-3 NMSA 1978 shall be at the rates provided in Subsections B through D of this section for any taxable year beginning on or after January 1, 2022.

                   B. For married individuals filing separate returns:

         If the taxable income is:              The tax shall be:

Not over $5,000                                            1.7% of taxable income

Over $5,000 but not over $7,500            $85.00 plus 3.2% of                                                                              excess over $5,000

Over $7,500 but not over $17,500          $165 plus 4.7% of excess                                                                            over $7,500

Over $17,500 but not over $37,500        $635 plus 5.2% of excess                                                                            over $17,500

Over $37,500 but not over $75,000        $1,675 plus 5.5% of                                                                              excess over $37,500

Over $75,000 but not over $150,000      $3,737.50 plus 5.8% of                                                                            excess over $75,000

Over $150,000                                                $8,087.50 plus 6.5% of                                                                            excess over $150,000.

                   C. For heads of household, surviving spouses and married individuals filing joint returns:

         If the taxable income is:              The tax shall be:

Not over $10,000                                          1.7% of taxable income

Over $10,000 but not over $15,000        $170 plus 3.2% of excess                                                                            over $10,000

Over $15,000 but not over $35,000        $330 plus 4.7% of excess                                                                            over $15,000

Over $35,000 but not over $75,000        $1,270 plus 5.2% of                                                                              excess over $35,000

Over $75,000 but not over $150,000      $3,350 plus 5.5% of                                                                              excess over $75,000

Over $150,000 but not over $300,000    $7,475 plus 5.8% of                                                                              excess over $150,000

Over $300,000                                                $16,175 plus 6.5% of                                                                            excess over $300,000.

                   D. For single individuals and for estates and trusts:

         If the taxable income is:              The tax shall be:

Not over $6,500                                            1.7% of taxable income

Over $6,500 but not over $10,000          $110.50 plus 3.2% of                                                                            excess over $6,500

Over $10,000 but not over $23,500        $222.50 plus 4.7% of                                                                            excess over $10,000

Over $23,500 but not over $50,000        $857 plus 5.2% of excess                                                                            over $23,500

Over $50,000 but not over $100,000      $2,235 plus 5.5% of                                                                              excess over $50,000

Over $100,000 but not over $200,000    $4,985 plus 5.8% of                                                                              excess over $100,000

Over $200,000                                                $10,785 plus 6.5% of                                                                            excess over $200,000.

                   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. REPEAL.--That version of Section 7-2-7 NMSA 1978 (being Laws 2005 (1st S.S.), Chapter 3, Section 2) is repealed.

         SECTION 3. EFFECTIVE DATE.--The effective date of the provisions of Section 1 of this act is January 1, 2022.

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