Bill > HB137

This bill, titled "Reduce income tax & create new brackets," proposes to amend existing New Mexico law regarding individual income tax rates, specifically for taxable years beginning on or after January 1, 2015. The core changes involve reducing the tax rates across various income brackets and for different filing statuses, including married individuals filing separately, heads of household, surviving spouses, married individuals filing jointly, single individuals, and estates and trusts. For instance, the lowest tax rate for most categories is reduced from 1.7% to 1.4% on the initial portion of taxable income. Additionally, the bill introduces new, higher income brackets with corresponding tax rates, effectively creating a more progressive tax structure for those with the highest incomes. The bill also retains a provision for calculating tax on lump-sum amounts included in net income.