Section 7-2-14.3 - Tax rebate of part of property tax due from low-income taxpayer; local option; refund.
7-2-14.3. Tax rebate of part of property tax due from low-income taxpayer; local option; refund.
A. The tax rebate provided by this section may be claimed for the taxable year for which the return is filed by an individual who:
(1) has his principal place of residence in a county that has adopted an ordinance pursuant to Subsection G of this section;
(2) is not a dependent of another individual;
(3) files a return; and
(4) incurred a property tax liability on his principal place of residence in the taxable year.
B. The tax rebate provided by this section shall be allowed for any individual eligible to claim the refund pursuant to Subsection A of this section and who:
(1) was not an inmate of a public institution for more than six months during the taxable year;
(2) was physically present in New Mexico for at least six months during the taxable year for which the rebate is claimed; and
(3) is eligible for the rebate as a low-income property taxpayer in accordance with the provisions of Subsection D of this section.
C. A husband and wife who file separate returns for the taxable year in which they could have filed a joint return may each claim only one-half of the tax rebate that would have been allowed on the joint return.
D. As used in the table in this subsection, "property tax liability" means the amount of property tax resulting from the imposition of the county and municipal property tax operating impositions on the net taxable value of the taxpayer's principal place of residence calculated for the year for which the rebate is claimed. The tax rebate provided in this section is as specified in the following table:
LOW-INCOME TAXPAYER'S PROPERTY TAX REBATE TABLE Taxpayer's Modified Gross Income Property Tax Rebate Over But Not
Over $0 $8,000 75% of property tax liability 8,000 10,000 70% of property tax liability 10,000 12,000 65% of property tax liability 12,000 14,000 60% of property tax liability 14,000 16,000 55% of property tax liability 16,000 18,000 50% of property tax liability 18,000 20,000 45% of property tax liability 20,000 22,000 40% of property tax liability 22,000 24,000 35% of property tax liability.
E. If a taxpayer's modified gross income is zero, the taxpayer may claim a tax rebate in the amount shown in the first row of the table. The tax rebate provided for in this section shall not exceed three hundred fifty dollars ($350) per return and, if a return is filed separately that could have been filed jointly, the tax rebate shall not exceed one hundred seventy-five dollars ($175). No tax rebate shall be allowed any taxpayer whose modified gross income exceeds twenty-four thousand dollars ($24,000).
F. The tax rebate provided for in this section may be deducted from the taxpayer's New Mexico income tax liability for the taxable year. If the tax rebate exceeds the taxpayer's income tax liability, the excess shall be refunded to the taxpayer.
G. In January of every odd-numbered year in which a county does not have in effect an ordinance adopted pursuant to this subsection, the board of county commissioners of the county shall conduct a public hearing on the question of whether the property tax rebate provided in this section benefiting low-income property taxpayers in the county should be made available through adoption of a county ordinance. Notice of the public hearing shall be published once at least two weeks prior to the hearing date in at least one newspaper of general circulation in the county and broadcast at some time within the week before the hearing on at least one radio station with substantial broadcasting coverage in the county. At the public hearing, the board shall take action on the question and if a majority of the members elected votes to adopt an ordinance, it shall be adopted no later than thirty days after the public hearing.
H. An ordinance adopted pursuant to Subsection G of this section shall specify the taxable years to which it is applicable. The board of county commissioners adopting an ordinance shall notify the department of the adoption of the ordinance and furnish a copy of the ordinance to the department no later than September 1 of the first taxable year to which the ordinance applies.
I. No later than December 31 of the year immediately following the first year in which the low-income taxpayer property tax rebate provided in the Income Tax Act is in effect for a county, and no later than December 31 of each year thereafter in which the tax rebate is in effect, the department shall certify to the county the amount of the loss of income tax revenue to the state for the previous taxable year attributable to the allowance of property tax rebates to taxpayers of that county. The county shall promptly pay the amount certified to the department. If a county fails to pay the amount certified within thirty days of the date of certification, the department may enforce collection of the amount by action against the county and may withhold from any revenue distribution to the county, not dedicated or pledged, amounts up to the amount certified.
J. As used in this section, "principal place of residence" means the dwelling owned and occupied by the taxpayer and so much of the land surrounding it, not to exceed five acres, as is reasonably necessary for use of the dwelling as a home and may consist of a part of a multidwelling or a multipurpose building and a part of the land upon which it is built.