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SENATE BILL 138
57
TH LEGISLATURE
-
STATE
OF
NEW
MEXICO
-
FIRST SESSION
,
2025
INTRODUCED BY
George K. Muñoz
AN ACT
RELATING TO TAXATION; REMOVING DISTRIBUTIONS FROM THE OIL AND
GAS PROCEEDS AND PASS-THROUGH ENTITY WITHHOLDING TAX ACT TO THE
MAGISTRATE RETIREMENT FUND AND JUDICIAL RETIREMENT FUND.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 7-1-6.43 NMSA 1978 (being Laws 2003,
Chapter 86, Section 1, as amended) is amended to read:
"7-1-6.43. DISTRIBUTION--OIL AND GAS PROCEEDS AND PASS-
THROUGH ENTITY WITHHOLDING TAX--[MAGISTRATE RETIREMENT FUND--
JUDICIAL RETIREMENT FUND ] LEGISLATIVE RETIREMENT FUND.--[A. ] A
distribution pursuant to Section 7-1-6.1 NMSA 1978 from the net
receipts attributable to the amount of tax deducted pursuant to
the Oil and Gas Proceeds and Pass-Through Entity Withholding
Tax Act shall be made [as follows:
(1) to the magistrate retirement fund in the
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amount of one hundred thousand dollars ($100,000);
(2) to the judicial retirement fund in the
amount of one hundred thousand dollars ($100,000); and
(3) on and after July 1, 2025 ] to the
legislative retirement fund in the amount of seventy-five
thousand dollars ($75,000) or, if larger, in an amount equal to
one-twelfth of the amount necessary to pay out the retirement
benefits due under state legislator member coverage plan 2 and
Paragraph (2) of Subsection C of Section 10-11-41 NMSA 1978 for
the succeeding calendar year.
[B. In regard to the distributions to the
magistrate retirement fund and the judicial retirement fund, in
December 2024 and in each December thereafter, the public
employees retirement association, with the assistance of the
administrative office of the courts, shall determine the funded
ratio of each fund as of the end of the preceding fiscal year.
If the funded ratio of the magistrate retirement fund for the
preceding fiscal year is equal to or greater than one hundred
percent, the association shall notify the department, and no
further distributions pursuant to Paragraph (1) of Subsection A
of this section shall be made. If the funded ratio of the
judicial retirement fund for the preceding fiscal year is equal
to or greater than one hundred percent, the association shall
notify the department, and no further distributions pursuant to
Paragraph (2) of Subsection A of this section shall be made.
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C. In regard to the distribution to the legislative
retirement fund, in December 2024 and in each December
thereafter, the public employees retirement association, with
the assistance of the legislative council service, shall
determine the amount of retirement benefits for the succeeding
calendar year. If the monthly average exceeds seventy-five
thousand dollars ($75,000), the association shall immediately
notify the department of the average amount. ]"
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