summary
Introduced
01/20/2022
01/20/2022
In Committee
02/15/2022
02/15/2022
Crossed Over
02/12/2022
02/12/2022
Passed
02/17/2022
02/17/2022
Dead
Signed/Enacted/Adopted
03/08/2022
03/08/2022
Introduced Session
2022 Regular Session
Bill Summary
AN ACT RELATING TO TAXATION; PROVIDING PASS-THROUGH ENTITIES AN ELECTION TO PAY AN ENTITY-LEVEL TAX IN LIEU OF WITHHOLDING; EXEMPTING INCOME SUBJECT TO THE ENTITY-LEVEL TAX FROM THE INCOME TAX ACT AND THE CORPORATE INCOME AND FRANCHISE TAX ACT.
AI Summary
This bill allows pass-through entities (such as partnerships and S corporations) to elect to pay an entity-level tax instead of withholding taxes from individual partners or shareholders. Income subject to this entity-level tax would be exempt from the state's personal income tax and corporate income tax. The bill sets the entity-level tax rate at the higher of the maximum personal income tax rate or the maximum corporate income tax rate, and defines "distributed net income" as the entity's New Mexico-sourced net income minus certain allocations. Pass-through entities electing to pay the entity-level tax must make estimated payments and can apply for a refund if their estimated payments exceed the amount owed.
Committee Categories
Budget and Finance, Business and Industry
Sponsors (2)
Last Action
Signed by Governor - Chapter 46 - Mar. 8 (on 03/08/2022)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.nmlegis.gov/Legislation/Legislation?chamber=H&legtype=B&legno=102&year=22 |
| BillText | https://www.nmlegis.gov/Sessions/22%20Regular/final/HB0102.pdf |
| BillText | https://www.nmlegis.gov/Sessions/22%20Regular/bills/house/HB0102.pdf |
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