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SENATE BILL 243
57TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 2025
INTRODUCED BY
Larry R. Scott and James G. Townsend and Candy Spence Ezzell
AN ACT
RELATING TO TAXATION; CREATING THE ALL CITIES AND COUNTIES FUND
TO TRANSFER A PORTION OF GROSS RECEIPTS TAX REVENUE TO
MUNICIPALITIES AND COUNTIES; DISTRIBUTING A PORTION OF GROSS
RECEIPTS TAX REVENUE TO THE ALL CITIES AND COUNTIES FUND.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. [NEW MATERIAL
] ALL CITIES AND COUNTIES FUND--
CREATED.--
A. The "all cities and counties fund" is created in
the state treasury.
B. The taxation and revenue department shall
calculate an amount to be transferred to each municipality in
an amount equal to the result of the following formula, where
"municipality" is the municipality receiving the transfer and
"county" is the county in which the municipality is located;
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provided that if a municipality is located in more than one
county, a transfer shall be calculated for each county in which
the municipality is located:
municipality population * (0.7 * (fund balance/state
population) + 0.3 * (((county EGRTR/all county EGRTR) *
fund balance)/county population)).
C. The taxation and revenue department shall
calculate an amount to be transferred to each county in an
amount equal to the result of the following formula:
county area population * (0.7 * (fund balance/state
population) + 0.3 * (((county EGRTR/all county EGRTR) *
fund balance)/county population)).
D. By October 1, 2026 and October 1 of each year
thereafter, the taxation and revenue department shall certify
to the state treasurer the amounts to be transferred to each
municipality and county as calculated pursuant to Subsections B
and C of this section.
E. By November 1, 2026 and November 1 of each year
thereafter, the state treasurer shall transfer from the all
cities and counties fund to each municipality and county the
amounts certified by the taxation and revenue department.
F. As used in this section:
(1) "all county EGRTR" means the equalized
gross receipts tax revenue of all counties;
(2) "county area population" means the
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population in that portion of a county located outside the
boundaries of any municipality according to the most recent
estimate of the resident population for incorporated places as
published by the United States census bureau, except that for H
class counties, "county area population" means the population
of the entire county;
(3) "county EGRTR" means the equalized gross
receipts tax revenue of the county receiving a transfer
pursuant to this section or, in the case of a municipality
receiving a transfer pursuant to this section, of the county in
which the municipality is located;
(4) "county population" means the population
of a county according to the most recent estimate of the
resident population of incorporated places as published by the
United States census bureau;
(5) "equalized gross receipts tax revenue"
means the net receipts received by the taxation and revenue
department in the prior fiscal year, subject to any increase or
decrease made pursuant to Section 7-1-6.15 NMSA 1978,
attributable to a county local option gross receipts tax rate
of one-fourth percent;
(6) "fund balance" means the amount of money
in the all cities and counties fund as of the end of the fiscal
year that precedes the date a transfer is required to be made
pursuant to this section;
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(7) "municipality population" means the
population of a municipality according to the most recent
estimate of the resident population for incorporated places as
published by the United States census bureau; provided that if
a municipality is located in more than one county,
"municipality population" means the population of the
municipality within each of the counties; and
(8) "state population" means the population of
the state of New Mexico according to the most recent estimate
of the resident population for incorporated places as published
by the United States census bureau.
SECTION 2. A new section of the Tax Administration Act is
enacted to read:
"[NEW MATERIAL
] DISTRIBUTION--ALL CITIES AND COUNTIES
FUND.--A distribution pursuant to Section 7-1-6.1 NMSA 1978
shall be made to the all cities and counties fund in an amount
equal to eight percent of the net receipts attributable to the
gross receipts tax distributable to the general fund."
SECTION 3. EFFECTIVE DATE.--The effective date of the
provisions of this act is July 1, 2025.
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