Bill > HB292

This bill creates the All Cities and Counties Fund, a new fund in the state treasury designed to distribute gross receipts tax revenue to municipalities and counties across New Mexico. The bill establishes a complex formula for calculating transfers to each municipality and county that considers population, fund balance, and equalized gross receipts tax revenue (EGRTR). Specifically, municipalities will receive funding based on their population and a weighted calculation that includes 70% of the fund balance divided by state population and 30% of the county's EGRTR. Counties will receive a similar calculation, but for areas outside municipal boundaries (with an exception for H class counties). The Taxation and Revenue Department will calculate these transfers annually by October 1st, and the State Treasurer will make the actual transfers by November 1st. The fund will be supported by an 8% distribution from the gross receipts tax revenue normally allocated to the general fund. Key defined terms include "equalized gross receipts tax revenue," which refers to net receipts from a specific county local option gross receipts tax rate. The bill is set to become effective on July 1, 2025, providing a mechanism to redistribute tax revenue more directly to local governments.

Government Affairs

https://www.nmlegis.gov/Legislation/Legislation?chamber=H&legtype=B&legno=292&year=25