New Mexico 2025 Regular Session

New Mexico House Bill HB292 Compare Versions

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

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28	28	HOUSE BILL 292
29	29	57
30	30	TH LEGISLATURE
31	31	-
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33	33	STATE
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35	35	OF
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37	37	NEW
38	38
39	39	MEXICO
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41	41	-
42	42	FIRST SESSION
43	43	,
44	44
45	45	2025
46	46	INTRODUCED BY
47	47	Elaine Sena Cortez and Jonathan A. Henry and Mark B. Murphy
48	48	and Jay C. Block and John Block
49	49	AN ACT
50	50	RELATING TO TAXATION; CREATING THE ALL CITIES AND COUNTIES FUND
51	51	TO TRANSFER A PORTION OF GROSS RECEIPTS TAX REVENUE TO
52	52	MUNICIPALITIES AND COUNTIES; DISTRIBUTING A PORTION OF GROSS
53	53	RECEIPTS TAX REVENUE TO THE ALL CITIES AND COUNTIES FUND.
54	54	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
55	55	SECTION 1. [NEW MATERIAL] ALL CITIES AND COUNTIES FUND--
56	56	CREATED.--
57	57	A. The "all cities and counties fund" is created in
58	58	the state treasury.
59	59	B. The taxation and revenue department shall
60	60	calculate an amount to be transferred to each municipality in
61	61	an amount equal to the result of the following formula, where
62	62	"municipality" is the municipality receiving the transfer and
63	63	"county" is the county in which the municipality is located;
64	64	.229176.1 underscored material = new
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91	91	provided that if a municipality is located in more than one
92	92	county, a transfer shall be calculated for each county in which
93	93	the municipality is located:
94	94	municipality population * (0.7 * (fund balance/state
95	95	population) + 0.3 * (((county EGRTR/all county EGRTR) *
96	96	fund balance)/county population)).
97	97	C. The taxation and revenue department shall
98	98	calculate an amount to be transferred to each county in an
99	99	amount equal to the result of the following formula:
100	100	county area population * (0.7 * (fund balance/state
101	101	population) + 0.3 * (((county EGRTR/all county EGRTR) *
102	102	fund balance)/county population)).
103	103	D. By October 1, 2026 and October 1 of each year
104	104	thereafter, the taxation and revenue department shall certify
105	105	to the state treasurer the amounts to be transferred to each
106	106	municipality and county as calculated pursuant to Subsections B
107	107	and C of this section.
108	108	E. By November 1, 2026 and November 1 of each year
109	109	thereafter, the state treasurer shall transfer from the all
110	110	cities and counties fund to each municipality and county the
111	111	amounts certified by the taxation and revenue department.
112	112	F. As used in this section:
113	113	(1) "all county EGRTR" means the equalized
114	114	gross receipts tax revenue of all counties;
115	115	(2) "county area population" means the
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144	144	population in that portion of a county located outside the
145	145	boundaries of any municipality according to the most recent
146	146	estimate of the resident population for incorporated places as
147	147	published by the United States census bureau, except that for H
148	148	class counties, "county area population" means the population
149	149	of the entire county;
150	150	(3) "county EGRTR" means the equalized gross
151	151	receipts tax revenue of the county receiving a transfer
152	152	pursuant to this section or, in the case of a municipality
153	153	receiving a transfer pursuant to this section, of the county in
154	154	which the municipality is located;
155	155	(4) "county population" means the population
156	156	of a county according to the most recent estimate of the
157	157	resident population of incorporated places as published by the
158	158	United States census bureau;
159	159	(5) "equalized gross receipts tax revenue"
160	160	means the net receipts received by the taxation and revenue
161	161	department in the prior fiscal year, subject to any increase or
162	162	decrease made pursuant to Section 7-1-6.15 NMSA 1978,
163	163	attributable to a county local option gross receipts tax rate
164	164	of one-fourth percent;
165	165	(6) "fund balance" means the amount of money
166	166	in the all cities and counties fund as of the end of the fiscal
167	167	year that precedes the date a transfer is required to be made
168	168	pursuant to this section;
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197	197	(7) "municipality population" means the
198	198	population of a municipality according to the most recent
199	199	estimate of the resident population for incorporated places as
200	200	published by the United States census bureau; provided that if
201	201	a municipality is located in more than one county,
202	202	"municipality population" means the population of the
203	203	municipality within each of the counties; and
204	204	(8) "state population" means the population of
205	205	the state of New Mexico according to the most recent estimate
206	206	of the resident population for incorporated places as published
207	207	by the United States census bureau.
208	208	SECTION 2. A new section of the Tax Administration Act is
209	209	enacted to read:
210	210	"[NEW MATERIAL] DISTRIBUTION--ALL CITIES AND COUNTIES
211	211	FUND.--A distribution pursuant to Section 7-1-6.1 NMSA 1978
212	212	shall be made to the all cities and counties fund in an amount
213	213	equal to eight percent of the net receipts attributable to the
214	214	gross receipts tax distributable to the general fund."
215	215	SECTION 3. EFFECTIVE DATE.--The effective date of the
216	216	provisions of this act is July 1, 2025.
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