Bill > HB484

This bill proposes to create a new tax exemption for tips earned by residents of New Mexico, allowing individuals to exclude the total amount of tips they receive from their taxable income. Specifically, the bill would add a provision to the state's Income Tax Act that permits residents to claim an exemption for tips received as compensation for services or as part of their wages. This means that any money earned through tips would not be counted when calculating an individual's net income for tax purposes. The tax exemption would take effect for all taxable years beginning on or after January 1, 2025, which provides clarity for taxpayers and tax authorities about when the new rule will be implemented. The bill aims to provide financial relief for workers in service industries who often rely on tips as a significant part of their income, such as restaurant servers, bartenders, taxi drivers, and other service professionals.

Military Affairs and Security

https://www.nmlegis.gov/Legislation/Legislation?chamber=H&legtype=B&legno=484&year=25