HB 477 — SOCIAL SECURITY INCOME TAX EXEMPTION

HOUSE BILL 477 5454TH THLEGISLATURE LEGISLATURE- STATE OF NEW MEXICO - STATEOFNEWMEXICO- FIRST SESSIO,SESSION, 2019 INTRODUCED BY Gail Armstrong andPursuant Daymonto ElyHouse 6Rule 824-1, 10this ANdocument ACTincorporates RELATINGamendments TOthat TAXATION;have been adopted prior to consideration of this measure by the House.

EXEMPTINGIt Ais CERTAINa AMOUNTtool OFto SOCIALshow SECURITYthe INCOMEamendments FROMin INCOMEcontext TAX.and is not to be used for the purpose of amendments.

14AN BEACT ITRELATING ENACTEDTO BYTAXATION; THE LEGISLATURE OF THE STATE OF NEW MEXICO:

SECTIONEXEMPTING 1.A CERTAIN AMOUNT OF SOCIAL h SECURITY INCOME FROM INCOME TAX.

Sectiong 7-2-5.2o NMSAt 1978hr (beingg Lawse 1985,i Chapterk 114,BE SectionIT 1,ENACTED asBY amended)THE isLEGISLATURE amendedOF toTHE read:STATE OF NEW MEXICO:

eh tr 17i "7-2-5.2.s SECTION 1.

EXEMPTION--SOCIALSection SECURITY7-2-5.2 INCOMENMSA --INCOME1978 OF(being wLaws l1985, nh d, 18t, PERSONSChapter SIXTY-FIVE114, ANDSection OLDER1, ORas BLIND.--[Anyamended) ]is Pursuantamended to thisread: = = 19 section:

ae lu ig ae b l e re 20h A."7-2-5.2.

anEXEMPTION--SOCIAL individualSECURITY mayINCOME claim--INCOME anOF exemptionn ind and ai t= m= mo 21h amountPERSONS equalSIXTY-FIVE toAND twenty-fourOLDER thousandOR dollarsBLIND.-HLVMCº-[Any] ($24,000)Pursuant ofto thel d] rb e,d 22i individual'sa netº income from the supplemental security income c e sthis ksection: 23 program under Title 16 of the federal Social Security Act;

orr i = r t e w d m a n bo 24A. B.

if an individual does not receive such income u [ but is sixty-five years of age or older or who, for federal .212493.2 income tax purposes, is blind, the individual may claim an exemption in an amountd specifiedm in: [Subsections A through C ] Paragraphs (1) through (3) of this [section] subsection not to exceed eight thousand dollars ($8,000) of income includable except for this exemption in net income:

[Individualsb havinge incomed boths withinº ando withoutt thisn state= shall.212493.2 apportions thisk exemptionm ine accordancee witha regulationsn e d r e l u [ A d amount equal to twenty-four thousand dollars ($24,000) of the secretary.individual's net income from the supplemental security income program under Title 16 of the federal Social Security Act;

A.]or»HLVMC (1)HLVMCºA. For married individuals filing separate returns, for any taxable year beginning on or after January 1, 1987:

TheAn maximumindividual amountmay ofclaim Ifan adjusted exemption allowablein underan grossamount incomeequal is:to the greater of:

(1) twenty-four thousand dollars ($24,000) of the individual's net income from the amount included in adjusted gross income pursuant to Section 86 of the Internal Revenue Code;

or (2) the amount of exemption provided in Subsection B of this section.»HLVMC B.

HLVMCºif an individual does not receive such income but is An individual»HLVMC sixty-five years of age or older or who, for federal income tax purposes, is blind HLVMCº, the individual»HLVMC may claim an exemption in an amount h specified in [Subsections A through C] Paragraphs (1) through u » r t h (3) of this [section] subsection not to exceed eight thousand g e l i dollars ($8,000) of income includable except for this exemption h r i s in net income:

[Individuals having income both within and h , e h t u g without this state shall apportion this exemption in accordance e b l e e , gh with regulations of the secretary.

n d d i = = o h A.] (1) For married individuals filing l ] b ,d i a º r e r = separate returns, for any taxable year beginning on or after t e w d m a n o January 1, 1987:

d m :

b r e t º o t n = .212493.2 s k m e - 2 - e a n e d r e l u [ A d The maximum amount of If adjusted exemption allowable under gross income is:

Not over $15,000 $8,000 Over $15,000 but not over $16,500 $7,000 Over $16,500 but not over $18,000 $6,000 e e 17 Over $18,000 but not over $19,500 $5,000 e e n d 18 Over $19,500 but not over $21,000 $4,000 = = l ] 19 Over $21,000 but not over $22,500 $3,000 a l r i 20 Over $22,500 but not over $24,000 $2,000 t e a t Over $24,000 but not over $25,500 $1,000 m m 21 e d r e 22 Over $25,500 0.

c e r c 23 [B.] (2) For heads of household, surviving e a n b 24 spouses and married individuals filing joint returns, for any u [ taxable year beginning on or after January 1, 1987:

.212493.2 - 2 - The maximum amount of h If adjusted exemption allowable under g o t hr gross income is:

g e i k Not over $30,000 $8,000 h r i s Over $30,000 but not over $33,000 $7,000 h , t, Over $33,000 but not over $36,000 $6,000 e u g e b l e e h Over $36,000 but not over $39,000 $5,000 n d d i = = o h Over $39,000 but not over $42,000 $4,000 l ] b ,d i a º e Over $42,000 but not over $45,000 $3,000 Overr $45,000i but= notr overt $48,000e $2,000w d m a n o Over $48,000$45,000 but not over $51,000$48,000 $1,000$2,000 Overd $51,000m 0.:

b e d s º o t n = .212493.2 s k m e - 3 - e a n e d r e l u [ A d Over $48,000 but not over $51,000 $1,000 Over $51,000 0.

The maximum amount of If adjusted exemption allowable under e e 17 gross income is:

e e n d 18 Not over $18,000 $8,000 = = l ] 19 Over $18,000 but not over $19,500 $7,000 a l r i 20 Over $19,500 but not over $21,000 $6,000 t e a t Over $21,000 but not over $22,500 $5,000 m m 21 e d r e 22 Over $22,500 but not over $24,000 $4,000 c e r c 23 Over $24,000 but not over $25,500 $3,000 e a n b 24 Over $25,500 but not over $27,000 $2,000 u [ Over $27,000 but not over $28,500 $1,000 .212493.2 - 3 - Over $28,500 0.

h C.

Individuals having income both within and without g o t hr this state shall apportion the exemptions provided in this g e i k section in accordance with rules of the secretary." h r i s SECTION 2.

APPLICABILITY.--The provisions of this act h , t, apply to taxable years beginning on or after January 1, 2019.

-e 4u -g 9e 11b 13l 15 e e 17h e- e4 - n d 18d i = = o h l ] 19b a,d l r i 20 t e a tº m m 21 e d r ei 22= cr t e rw cd 23m e a n bo 24d um [: .212493.2

b e d s º o t n = .212493.2 s k m e e a n e d r e l u [ A d