New Mexico 2025 Regular Session

New Mexico Senate Bill SB448 Compare Versions

Only one version of the bill is available at this time.

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28	28	SENATE BILL 448
29	29	57
30	30	TH LEGISLATURE
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33	33	STATE
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35	35	OF
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39	39	MEXICO
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42	42	FIRST SESSION
43	43	,
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45	45	2025
46	46	INTRODUCED BY
47	47	Anthony L. Thornton and Jay C. Block and Nicole Tobiassen
48	48	AN ACT
49	49	RELATING TO TAXATION; ALLOWING EMPLOYERS WITH FIFTY OR FEWER
50	50	EMPLOYEES TO ELECT TO NOT WITHHOLD THOSE EMPLOYEES' WAGES FOR
51	51	PAYMENT OF INCOME TAX.
52	52	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
53	53	SECTION 1. Section 7-3-3 NMSA 1978 (being Laws 1961,
54	54	Chapter 243, Section 3, as amended) is amended to read:
55	55	"7-3-3. TAX WITHHELD AT SOURCE.--
56	56	A. Every employer who deducts and withholds a
57	57	portion of an employee's wages for payment of income tax under
58	58	the provisions of the Internal Revenue Code shall deduct and
59	59	withhold an amount for each payroll period computed from a
60	60	state withholding tax table furnished by the department;
61	61	provided:
62	62	(1) if the employee instructs the employer to
63	63	.229381.1 underscored material = new
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90	90	withhold a greater amount, the employer shall deduct and
91	91	withhold the greater amount;
92	92	(2) if the employee is not a resident of New
93	93	Mexico and is to perform services in New Mexico for fifteen or
94	94	fewer days cumulatively during the calendar year, the employer
95	95	is not required to deduct and withhold an amount from that
96	96	employee's wages; [and ]
97	97	(3) if the aggregate monthly amount withheld
98	98	under this section would be less than one dollar ($1.00) for an
99	99	employee, the employer shall not be required to deduct and
100	100	withhold wages in regard to that employee; and
101	101	(4) if the employer has fifty employees or
102	102	fewer, the employer may elect not to withhold an amount from
103	103	those employees' wages. An employer who makes this election
104	104	shall notify the department, on a form and in a manner
105	105	prescribed by the department, and shall notify each employee of
106	106	this election and the employee's responsibility to make
107	107	quarterly estimated payments pursuant to Section 7-2-12.2 NMSA
108	108	1978.
109	109	B. The department shall devise and furnish a state
110	110	withholding tax table based on statutes made and provided to
111	111	employers required to withhold amounts under this section.
112	112	This table shall be devised to provide for a yearly aggregate
113	113	withholding that will approximate the state income tax
114	114	liability of average taxpayers in each exemption category.
115	115	.229381.1
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143	143	C. If an individual requests in writing that the
144	144	payor deduct and withhold an amount from the amount of the
145	145	pension or annuity due the individual, the payor making payment
146	146	of a pension or annuity to an individual domiciled in New
147	147	Mexico shall deduct and withhold the amount requested to be
148	148	deducted and withheld, provided that the payor is not required
149	149	to deduct and withhold any amount less than ten dollars
150	150	($10.00) per payment. The written request shall include the
151	151	payee's name, current address, taxpayer identification number
152	152	and, if applicable, the contract, policy or account number to
153	153	which the request applies.
154	154	D. Every person in New Mexico who is required by
155	155	the provisions of the Internal Revenue Code to deduct and
156	156	withhold federal tax from payment of winnings that are subject
157	157	to withholding shall deduct and withhold from such payment a
158	158	tax in an amount equal to six percent of the winnings, except
159	159	that an Indian nation, tribe or pueblo or an agency,
160	160	department, subdivision or instrumentality thereof is not
161	161	required to deduct or withhold from payments made to members or
162	162	spouses of members of that Indian nation, tribe or pueblo."
163	163	SECTION 2. APPLICABILITY.--The provisions of this act
164	164	apply to taxable years beginning on or after January 1, 2026.
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166	166	.229381.1