Santa Fe, NM – Today, House Bill 77, passed the House Labor, Veterans, and Military Affairs Committee. House Bill 77, sponsored by Representative Daymon Ely (D-Albuquerque), Representative Dayan Hochman-Vigil (D-Albuquerque), and Senator Bill Tallman (D-Albuquerque), proposes a limited exemption from Personal Income Tax for income from social security retirement that is taxable for federal purposes. Each individual may claim an exemption up to $24,000. Here is a statement from NM House Democrats:
“This is intended to give a break to people on fixed incomes. There are other ways to generate income than double-taxing New Mexico seniors,” said Representative Daymon Ely (D-Albuquerque).
House Bill 77 will have a far-reaching impact in New Mexico where the 65-and-over population is expanding. Currently, one-third of the seniors in New Mexico who receive Social Security rely on the benefit as their only source of income and over 50% rely on it as the majority of their income. 1 in 5 New Mexicans, more than 382,000 residents, receive Social Security benefits.1
House Bill 77 passed the House Labor, Veterans, and Military Affairs Committee and now moves on to the House Taxation and Revenue Committee.
1. Social Security New Mexico Quick Facts, AARP, 2014