The Senate is debating a bill that would give tax rebates to many New Mexicans. The legislation, which is significantly smaller than Gov. Bill Richardson’s proposal, would direct the state to send out rebates on the state income tax this fall, said Sen. Bernadette Sanchez, D-Albuquerque. The rebates would go to 780,000 taxpayers.

The rebates, as explained on the Senate floor, would be larger for lower income taxpayers and smaller for taxpayers earning more. Taxpayers who earn more than $70,000 in gross income, however, would not receive a rebate. Gross income is usually defined as a person’s income before all deductions.

The way the legislation is written, each taxpayer making up to $30,000 in gross income would receive $50 tax rebate. Each dependent living in such a household also would trigger a $50 rebate.

Each taxpayer earning up to $50,000 in gross income would qualify for $40 rebate. Likewise, each dependent in such a household would trigger a $40 rebate.

Each taxpayer earning up to $70,000 in gross income would qualify for $25. LIkewise, each dependent in such a household would trigger a $25 rebate.

This bill would cost $55 million, which is significantly smaller than the $163 million the governor had wanted originally for tax rebates, Sanchez said.