New Mexico 2025 Regular Session

New Mexico Senate Bill SB243 Compare Versions

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

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28	28	SENATE BILL 243
29	29	57TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 2025
30	30	INTRODUCED BY
31	31	Larry R. Scott and James G. Townsend and Candy Spence Ezzell
32	32	AN ACT
33	33	RELATING TO TAXATION; CREATING THE ALL CITIES AND COUNTIES FUND
34	34	TO TRANSFER A PORTION OF GROSS RECEIPTS TAX REVENUE TO
35	35	MUNICIPALITIES AND COUNTIES; DISTRIBUTING A PORTION OF GROSS
36	36	RECEIPTS TAX REVENUE TO THE ALL CITIES AND COUNTIES FUND.
37	37	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
38	38	SECTION 1. [NEW MATERIAL
39	39	] ALL CITIES AND COUNTIES FUND--
40	40	CREATED.--
41	41	A. The "all cities and counties fund" is created in
42	42	the state treasury.
43	43	B. The taxation and revenue department shall
44	44	calculate an amount to be transferred to each municipality in
45	45	an amount equal to the result of the following formula, where
46	46	"municipality" is the municipality receiving the transfer and
47	47	"county" is the county in which the municipality is located;
48	48	.229791.1 underscored material = new [bracketed material
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75	75	provided that if a municipality is located in more than one
76	76	county, a transfer shall be calculated for each county in which
77	77	the municipality is located:
78	78	municipality population * (0.7 * (fund balance/state
79	79	population) + 0.3 * (((county EGRTR/all county EGRTR) *
80	80	fund balance)/county population)).
81	81	C. The taxation and revenue department shall
82	82	calculate an amount to be transferred to each county in an
83	83	amount equal to the result of the following formula:
84	84	county area population * (0.7 * (fund balance/state
85	85	population) + 0.3 * (((county EGRTR/all county EGRTR) *
86	86	fund balance)/county population)).
87	87	D. By October 1, 2026 and October 1 of each year
88	88	thereafter, the taxation and revenue department shall certify
89	89	to the state treasurer the amounts to be transferred to each
90	90	municipality and county as calculated pursuant to Subsections B
91	91	and C of this section.
92	92	E. By November 1, 2026 and November 1 of each year
93	93	thereafter, the state treasurer shall transfer from the all
94	94	cities and counties fund to each municipality and county the
95	95	amounts certified by the taxation and revenue department.
96	96	F. As used in this section:
97	97	(1) "all county EGRTR" means the equalized
98	98	gross receipts tax revenue of all counties;
99	99	(2) "county area population" means the
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128	128	population in that portion of a county located outside the
129	129	boundaries of any municipality according to the most recent
130	130	estimate of the resident population for incorporated places as
131	131	published by the United States census bureau, except that for H
132	132	class counties, "county area population" means the population
133	133	of the entire county;
134	134	(3) "county EGRTR" means the equalized gross
135	135	receipts tax revenue of the county receiving a transfer
136	136	pursuant to this section or, in the case of a municipality
137	137	receiving a transfer pursuant to this section, of the county in
138	138	which the municipality is located;
139	139	(4) "county population" means the population
140	140	of a county according to the most recent estimate of the
141	141	resident population of incorporated places as published by the
142	142	United States census bureau;
143	143	(5) "equalized gross receipts tax revenue"
144	144	means the net receipts received by the taxation and revenue
145	145	department in the prior fiscal year, subject to any increase or
146	146	decrease made pursuant to Section 7-1-6.15 NMSA 1978,
147	147	attributable to a county local option gross receipts tax rate
148	148	of one-fourth percent;
149	149	(6) "fund balance" means the amount of money
150	150	in the all cities and counties fund as of the end of the fiscal
151	151	year that precedes the date a transfer is required to be made
152	152	pursuant to this section;
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181	181	(7) "municipality population" means the
182	182	population of a municipality according to the most recent
183	183	estimate of the resident population for incorporated places as
184	184	published by the United States census bureau; provided that if
185	185	a municipality is located in more than one county,
186	186	"municipality population" means the population of the
187	187	municipality within each of the counties; and
188	188	(8) "state population" means the population of
189	189	the state of New Mexico according to the most recent estimate
190	190	of the resident population for incorporated places as published
191	191	by the United States census bureau.
192	192	SECTION 2. A new section of the Tax Administration Act is
193	193	enacted to read:
194	194	"[NEW MATERIAL
195	195	] DISTRIBUTION--ALL CITIES AND COUNTIES
196	196	FUND.--A distribution pursuant to Section 7-1-6.1 NMSA 1978
197	197	shall be made to the all cities and counties fund in an amount
198	198	equal to eight percent of the net receipts attributable to the
199	199	gross receipts tax distributable to the general fund."
200	200	SECTION 3. EFFECTIVE DATE.--The effective date of the
201	201	provisions of this act is July 1, 2025.
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