Low-income comprehensive tax rebate.

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A. Except as otherwise provided in Subsection B of this section, any resident who files an individual New Mexico income tax return and who is not a dependent of another individual may claim a tax rebate for a portion of state and local taxes to which the resident has been subject during the taxable year for which the return is filed. The tax rebate may be claimed even though the resident has no income taxable under the Income Tax Act. A husband and wife who file separate returns for a taxable year in which they could have filed a joint return may each claim only one-half of the tax rebate that would have been allowed on a joint return.

B. No claim for the tax rebate provided in this section shall be filed by a resident who was an inmate of a public institution for more than six months during the taxable year for which the tax rebate could be claimed or who was not physically present in New Mexico for at least six months during the taxable year for which the tax rebate could be claimed.

C. For the purposes of this section, the total number of exemptions for which a tax rebate may be claimed or allowed is determined by adding the number of federal exemptions allowable for federal income tax purposes for each individual included in the return who is domiciled in New Mexico plus two additional exemptions for each individual domiciled in New Mexico included in the return who is sixty-five years of age or older plus one additional exemption for each individual domiciled in New Mexico included in the return who, for federal income tax purposes, is blind plus one exemption for each minor child or stepchild of the resident who would be a dependent for federal income tax purposes if the public assistance contributing to the support of the child or stepchild was considered to have been contributed by the resident.

D. The tax rebate provided for in this section may be claimed in the amount shown in the following table:

Modified Gross
Income is:

And the total number of exemptions is:

Over

But Not
Over

1

2

3

4

5

6 or
More

$ 0

$ 500

$120

$160

$200

$240

$280

$320

500

1,000

135

195

250

310

350

415

1,000

1,500

135

195

250

310

350

435

1,500

2,000

135

195

250

310

350

450

2,000

2,500

135

195

250

310

350

450

2,500

3,000

135

195

250

310

350

450

3,000

3,500

135

195

250

310

350

450

3,500

4,000

135

195

250

310

355

450

4,000

4,500

135

195

250

310

355

450

4,500

5,000

125

190

240

305

355

450

5,000

5,500

115

175

230

295

355

430

5,500

6,000

105

155

210

260

315

410

6,000

7,000

90

130

170

220

275

370

7,000

8,000

80

115

145

180

225

295

8,000

9,000

70

105

135

170

195

240

9,000

10,000

65

95

115

145

175

205

10,000

11,000

60

80

100

130

155

185

11,000

12,000

55

70

90

110

135

160

12,000

13,000

50

65

85

100

115

140

13,000

14,000

50

65

85

100

115

140

14,000

15,000

45

60

75

90

105

120

15,000

16,000

40

55

70

85

95

110

16,000

17,000

35

50

65

80

85

105

17,000

18,000

30

45

60

70

80

95

18,000

19,000

25

35

50

60

70

80

19,000

20,000

20

30

40

50

60

65

20,000

21,000

15

25

30

40

50

55

21,000

22,000

10

20

25

35

40

45.

E. If a taxpayer's modified gross income is zero, the taxpayer may claim a credit in the amount shown in the first row of the table appropriate for the taxpayer's number of exemptions.

F. The tax rebates provided for in this section may be deducted from the taxpayer's New Mexico income tax liability for the taxable year. If the tax rebates exceed the taxpayer's income tax liability, the excess shall be refunded to the taxpayer.

G. For purposes of this section, "dependent" means "dependent" as defined by Section 152 of the Internal Revenue Code of 1986, as that section may be amended or renumbered, but also includes any minor child or stepchild of the resident who would be a dependent for federal income tax purposes if the public assistance contributing to the support of the child or stepchild was considered to have been contributed by the resident.

History: 1953 Comp., § 72-15A-11.1, enacted by Laws 1972, ch. 20, § 2; 1973, ch. 336, § 1; 1974, ch. 17, § 1; 1975, ch. 213, § 1; 1977, ch. 197, § 1; 1978, ch. 145, § 1; 1981, ch. 37, § 24; 1986, ch. 20, § 29; 1986 (3d S.S.), ch. 1, § 1; 1987, ch. 264, § 7; 1990, ch. 49, § 8; 1992, ch. 78, § 2; 1994, ch. 5, § 21; 1998, ch. 99, § 2.

ANNOTATIONS

Cross references. — For Section 152 of the Internal Revenue Code, see 26 U.S.C.S. § 1152.

The 1998 amendment, rewrote the tax rebate table in Subsection D. Laws 1998, ch. 99, contains no effective date provision, but pursuant to N.M. Const., art. IV, § 23, is effective May 20, 1998, 90 days after adjournment of the legislature.

The 1994 amendment, effective May 18, 1994, deleted "tax rebates for food and medical expenses" at the end of the section heading, and substituted the table in Subsection D for the former table.

The 1992 amendment, effective May 20, 1992, added present Subsection E; redesignated former Subsections E and F as present Subsections F and G; and inserted "of 1986" near the beginning of Subsection G.

The 1990 amendment, effective May 16, 1990, added the language beginning "plus one exemption for each minor child" at the end of Subsection C and added Subsection F.

Law reviews. — For article, "An Intergovernmental Approach to Tax Reform," see 4 N.M.L. Rev. 189 (1974).

Am. Jur. 2d, A.L.R. and C.J.S. references. — 71 Am. Jur. 2d State and Local Taxation §§ 549 to 551.

84 C.J.S. Taxation §§ 60 to 68; 85 C.J.S. Taxation §§ 1738 to 1755.


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