SENATE INDIAN, RURAL AND CULTURAL AFFAIRS

COMMITTEE SUBSTITUTE FOR

SENATE BILL 514

56th legislature - STATE OF NEW MEXICO - first session, 2023

AN ACT

RELATING TO THE PUBLIC PEACE, HEALTH, SAFETY AND WELFARE; 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.--

          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; 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, 2024 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, 2024 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 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;

                (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 twenty-four 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, 2023.

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