A. Any resident who has attained the age of sixty-five and files an individual New Mexico income tax return and is not a dependent of another individual may claim a tax rebate for the taxable year for which the return is filed. The tax rebate shall be the amount of property tax due on the resident's principal place of residence for the taxable year that exceeds the property tax liability indicated by the table in Subsection F or G, as appropriate, of this section, based upon the taxpayer's modified gross income.
B. Any resident otherwise qualified under this section who rents a principal place of residence from another person may calculate the amount of property tax due by multiplying the gross rent for the taxable year by six percent. The tax rebate shall be the amount of property tax due on the taxpayer's principal place of residence for the taxable year that exceeds the property tax liability indicated by the table in Subsection F or G, as appropriate, of this section, based upon the taxpayer's modified gross income.
C. As used in this section, "principal place of residence" means the resident's dwelling, whether owned or rented, and so much of the land surrounding it, not to exceed five acres, as is reasonably necessary for use of the dwelling as a home and may consist of a part of a multidwelling or a multipurpose building and a part of the land upon which it is built.
D. No claim for the tax rebate provided in this section shall be allowed a resident who was an inmate of a public institution for more than six months during the taxable year 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.
E. 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.
F. For taxpayers whose principal place of residence is in a county that does not have in effect for the taxable year a resolution in accordance with Subsection J of this section, the tax rebate provided for in this section may be claimed in the amount of the property tax due each taxable year that exceeds the amount shown as property tax liability in the following table:
| ELDERLY HOMEOWNERS' MAXIMUM PROPERTY TAX LIABILITY TABLE | ||
| Taxpayers' Modified Gross Income | Property Tax | |
| Over | But Not | |
| $ 0 | $ 1,000 | $ 20 |
| 1,000 | 2,000 | 25 |
| 2,000 | 3,000 | 30 |
| 3,000 | 4,000 | 35 |
| 4,000 | 5,000 | 40 |
| 5,000 | 6,000 | 45 |
| 6,000 | 7,000 | 50 |
| 7,000 | 8,000 | 55 |
| 8,000 | 9,000 | 60 |
| 9,000 | 10,000 | 75 |
| 10,000 | 11,000 | 90 |
| 11,000 | 12,000 | 105 |
| 12,000 | 13,000 | 120 |
| 13,000 | 14,000 | 135 |
| 14,000 | 15,000 | 150 |
| 15,000 | 16,000 | 180. |
G. For taxpayers whose principal place of residence is in a county that has in effect for the taxable year a resolution in accordance with Subsection J of this section, the tax rebate provided for in this section may be claimed in the amount of the property tax due each taxable year that exceeds the amount shown as property tax liability in the following table:
| ELDERLY HOMEOWNERS' MAXIMUM PROPERTY TAX LIABILITY TABLE | ||
| Taxpayers' Modified Gross Income | Property Tax | |
| Over | But Not | |
| $ 0 | $ 1,000 | $ 20 |
| 1,000 | 2,000 | 25 |
| 2,000 | 3,000 | 30 |
| 3,000 | 4,000 | 35 |
| 4,000 | 5,000 | 40 |
| 5,000 | 6,000 | 45 |
| 6,000 | 7,000 | 50 |
| 7,000 | 8,000 | 55 |
| 8,000 | 9,000 | 60 |
| 9,000 | 10,000 | 75 |
| 10,000 | 11,000 | 90 |
| 11,000 | 12,000 | 105 |
| 12,000 | 13,000 | 120 |
| 13,000 | 14,000 | 135 |
| 14,000 | 15,000 | 150 |
| 15,000 | 16,000 | 165 |
| 16,000 | 17,000 | 180 |
| 17,000 | 18,000 | 195 |
| 18,000 | 19,000 | 210 |
| 19,000 | 20,000 | 225 |
| 20,000 | 21,000 | 240 |
| 21,000 | 22,000 | 255 |
| 22,000 | 23,000 | 270 |
| 23,000 | 24,000 | 285 |
| 24,000 | 25,000 | 300. |
H. If a taxpayer's modified gross income is zero, the taxpayer may claim a tax rebate based upon the amount shown in the first row of the appropriate table. The tax rebate provided for in this section shall not exceed two hundred fifty dollars ($250) per return, and, if a return is filed separately that could have been filed jointly, the tax rebate shall not exceed one hundred twenty-five dollars ($125). No tax rebate shall be allowed any taxpayer whose modified gross income exceeds sixteen thousand dollars ($16,000) for taxpayers whose principal place of residence is in a county that does not have in effect for the taxable year a resolution in accordance with Subsection J of this section and twenty-five thousand dollars ($25,000) for all other taxpayers.
I. The tax rebate provided for in this section may be deducted from the taxpayer's New Mexico income tax liability for the taxable year. If the tax rebate exceeds the taxpayer's income tax liability, the excess shall be refunded to the taxpayer.
J. The board of county commissioners may adopt a resolution authorizing otherwise qualified taxpayers whose principal place of residence is in the county to claim the rebate provided by this section in the amounts set forth in Subsection G of this section. The resolution must also provide that the county will reimburse the state for the additional amount of tax rebates paid to such taxpayers over the amount that would have been paid to such taxpayers under Subsection F of this section. The resolution may apply to one or more taxable years and shall specify the period of time for which the rebate provided by this section may be claimed by qualified taxpayers. The county must adopt the resolution and notify the department of the adoption by no later than September 1 of the taxable year to which the resolution first applies. The department shall determine the additional amounts paid to taxpayers of the county for each taxable year and shall bill the county for the amount at the time and in the manner determined by the department. If the county fails to pay any bill within thirty days, the department may deduct the amount due from any amount to be transferred or distributed to the county by the state, other than debt interceptions.
History: 1953 Comp., § 72-15A-11.4, enacted by Laws 1977, ch. 196, § 1; 1981, ch. 37, § 28; 1993, ch. 307, § 2; 1997, ch. 117, § 1; 1999, ch. 47, § 3; 2003, ch. 275, § 5.
ANNOTATIONSCross references. — For meaning of "modified gross income", see 7-2-2 NMSA 1978.
Compiler's notes. — Laws 1977, ch. 196, designated the above section as 72-15A-11.4, 1953 Comp. Since Laws 1977, ch. 114, had previously enacted a section designated as 72-15A-11.4, 1953 Comp., then compiled as 7-2-17 NMSA 1978, the above section was designated as 72-15A-11.5, 1953 Comp., by the compiler.
The 2003 amendment, effective June 20, 2003, inserted "and shall specify the period of time for which the rebate provided by this section may be claimed by qualified taxpayers" following "more taxable years" in Subsection J.
The 1999 amendment, effective June 18, 1999, added additional amounts to the table in Subsection F.
The 1997 amendment made stylistic changes throughout the section, redesignated Subsection H as Subsection I, and added Subsections G, H, and J. Laws 1997, ch. 117 contains no effective date provision, but, pursuant to N.M. Const., art. IV, § 23, is effective June 20, 1997, 90 days after adjournment of the legislature.
Am. Jur. 2d, A.L.R. and C.J.S. references. — 71 Am. Jur. 2d State and Local Taxation §§ 518, 545, 549, 551.
85 C.J.S. Taxation §§ 1715 to 1755.