Bill > SB623

This bill enacts a new "income tax supplemental tax" that will be phased in over several years, increasing the tax burden on higher earners in New Mexico. Starting in taxable year 2016, this supplemental tax will be applied to taxable income above certain thresholds, with the rate gradually increasing each year until it reaches one percent for taxable years beginning on or after January 1, 2019. Specifically, for 2016, the tax rate is three-tenths of a percent on income exceeding $100,000 for single individuals, married individuals filing separately, and estates and trusts, and on income exceeding $150,000 for heads of households, surviving spouses, and married individuals filing jointly. This rate will then increase to five-tenths of a percent in 2017, eight-tenths of a percent in 2018, and finally one percent in 2019 and beyond, on the same income thresholds.