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.
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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