Committee tables proposed eight‑year phase‑out of Social Security income tax after equity and revenue concerns

Representative Elaine Cinnacortes presented House Bill 92 and an accompanying amendment, describing the bill as an eight‑year phase-out that would ultimately exempt Social Security income from state income tax.

"This bill phases out the income tax on Social Security, which puts money back into seniors' pockets," Cinnacortes said, adding the phase-out is intended to give time for the economy to adjust.

Alyssa Kenny Geier testified in opposition and urged amendments to exclude higher‑income earners. "Higher income earners do not really have that double tax because there is a cap on the Social Security contribution that earners put into the fund," Geier said. She cited revenue concerns raised in the fiscal-impact review and argued revenue should prioritize schools, housing and services that attract younger families.

Legislative Council staff attended for technical assistance and answered questions about income thresholds. Committee members pressed for data on how many recipients would benefit, whether retirees moving to New Mexico would offset revenue loss, and whether the change mostly benefits higher‑income filers. Staff said precise demographic offsets and long‑term migration effects were not available during the hearing.

Following debate, Representative Dela Cruz moved to table HB92. The tabling motion passed 5–3 and the bill was tabled in committee.

Action taken: Motion to table HB92 passed (final tally: 5 yes, 3 no).