Bill > HB21

This bill enacts a new "income tax supplemental tax" that will be added to the existing income tax imposed by Section 7-2-3 NMSA 1978, with the rates gradually increasing each year starting in taxable year 2016. For taxable years beginning in 2016, the supplemental tax will be three-tenths of one percent (0.3%) on taxable income above certain thresholds, which vary depending on filing status: $100,000 for married individuals filing separately, single individuals, and estates and trusts, and $150,000 for heads of households, surviving spouses, and married individuals filing jointly. This supplemental tax rate will then increase to five-tenths of one percent (0.5%) for taxable years beginning in 2017, eight-tenths of one percent (0.8%) for taxable years beginning in 2018, and finally to one percent (1%) for taxable years beginning on or after January 1, 2019, with the same income thresholds applying throughout.