Bill > SB243

This bill creates the "All Cities and Counties Fund" in the state treasury, establishing a new mechanism for distributing tax revenues to municipalities and counties in New Mexico. The taxation and revenue department will calculate transfers to each municipality and county using a complex formula that considers population, fund balance, and equalized gross receipts tax revenue (EGRTR). For municipalities, the transfer will be calculated based on the municipality's population and a weighted combination of the fund balance per state resident and the county's proportion of total EGRTR. Counties will receive a similar transfer, with a focus on the population in unincorporated areas. The bill mandates that by October 1, 2026, and annually thereafter, the taxation and revenue department will certify transfer amounts, and by November 1, the state treasurer will make these transfers. Additionally, the bill stipulates that eight percent of the net receipts from the gross receipts tax distributable to the general fund will be allocated to this new fund. The provisions of the bill will take effect on July 1, 2025, providing a structured approach to redistributing tax revenues across New Mexico's local jurisdictions.

Budget and Finance

https://www.nmlegis.gov/Legislation/Legislation?chamber=S&legtype=B&legno=243&year=25