Bill > SB116

This bill, titled "Uniformed Svc. Retirement Pay Tax Exemption," proposes to amend existing New Mexico law regarding income tax exemptions for retirement pay. Specifically, it removes the previous limit of $30,000 that could be exempted from income tax for "armed forces" retirement pay. Instead, the bill allows individuals who are "uniformed services" retirees or their surviving spouses to claim an exemption for the entire amount of their uniformed services retirement pay that would otherwise be included in their net income. The term "uniformed service" is expanded to include various branches of the U.S. military, the U.S. merchant marine, the commissioned corps of the U.S. Public Health Service and the National Oceanic and Atmospheric Administration, and state National Guard units. A "uniformed services retiree" is defined as a former member of these services who has separated with lifetime benefits. These changes are set to take effect for taxable years beginning on or after January 1, 2027.

https://www.nmlegis.gov/Legislation/Legislation?chamber=S&legtype=B&legno=116&year=26