SB 302 — PUBLIC PEACE, HEALTH, SAFETY & WELFARE

SENATE PUBLIC AFFAIRS COMMITTEE SUBSTITUTE FOR SENATE BILL 302 53RD LEGISLATURE - STATEOFNEWMEXICO-STATE OF NEW MEXICO - SECOND SESSION , 2018 INTRODUCED4 BY Gerald Ortiz y Pino 6 8 10 AN ACT RELATING TO THE PUBLIC PEACE, HEALTH, SAFETY AND WELFARE.WELFARE;

BECREATING ITNEW ENACTEDINCOME BYTAX THEBRACKETS; LEGISLATURE OF THE STATE OF NEW MEXICO:

14REPEALING 16AN eOUTDATED tVERSION 17OF wSECTION l7-2-7 nNMSA d1978 18(BEING =LAWS =2005 19(1ST aS.S.), lCHAPTER i3, aSECTION e2). r 20 a t m m 21 d r e 22 c e s k 23 e a n b 24 u [ .210130.1

16 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

e t 17 SECTION 1.

Section 7-2-7 NMSA 1978 (being Laws 2005, w l n d 18 Chapter 104, Section 4) is amended to read:

= = 19 "7-2-7.

INDIVIDUAL INCOME TAX RATES.--The tax imposed by a l i a e r 20 Section 7-2-3 NMSA 1978 shall be at the following rates for any a t m m 21 taxable year beginning on or after January 1, [2008 ] 2019:

d r e 22 A.

For married individuals filing separate returns:

c e s k 23 If the taxable income is:

The tax shall be:

e a n b 24 Not over $4,000 1.7% of taxable income u [ Over $4,000 but not over $8,000 $68.00 plus 3.2% of .210419.1 SPAC/SB 302 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 $90,000 $384 plus 4.9% of excess over $12,000 Over $90,000 but not over $180,000 $4,206 plus 6.9% of excess over $90,000 Over $180,000 $10,416 plus 7.9% of excess over $180,000.

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 e e 17 excess over $16,000 e e n d 18 Over $24,000 but not over $180,000 $768 plus 4.9% of = = l ] 19 excess over $24,000 a l r i 20 Over $180,000 but not over $360,000 $8,412 plus 6.9% of t e a t excess over $180,000 m m 21 e d Over $360,000 $20,832 plus 7.9% of r e 22 c e r c 23 excess over $360,000.

e a n b 24 C.

For single individuals and for estates and u [ trusts:

.210419.1 - 2 - SPAC/SB 302 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 $120,000 $504.50 plus 4.9% of excess over $16,000 Over $120,000 but not over $240,000 $5,600.50 plus 6.9% of excess over $120,000 Over $240,000 $13,880.50 plus 7.9% of excess over $240,000.

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 e e 17 taxable income;

and e e n d 18 (2) the amount of tax that would be due on an = = l ] 19 amount equal to the taxpayer's taxable income and twenty a l r i 20 percent of the taxpayer's lump-sum amounts included in net t e a t income." m m 21 e d SECTION 2.

REPEAL.--That version of Section 7-2-7 NMSA r e 22 c e r c 23 1978 (being Laws 2005 (1st S.S.), Chapter 3, Section 2) is e a n b 24 repealed.

u [ SECTION 3.

EFFECTIVE DATE.--The effective date of the .210419.1 - 3 - SPAC/SB 302 provisions of this act is January 1, 2019.

- 4 - 4 6 8 10 12 14 16 e e 17 e e n d 18 = = l ] 19 a l r i 20 t e a t m m 21 e d r e 22 c e r c 23 e a n b 24 u [ .210419.1