44TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 1999
RELATING TO SMALL CITIES ASSISTANCE; INCREASING THE AMOUNT OF THE MAXIMUM ANNUAL MUNICIPAL DISTRIBUTION TO A QUALIFYING MUNICIPALITY FROM THE SMALL CITIES ASSISTANCE FUND.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 3-37A-3 NMSA 1978 (being Laws 1979, Chapter 284, Section 3, as amended) is amended to read:
"3-37A-3. SMALL CITIES ASSISTANCE FUND--DISTRIBUTION.--
A. The "small cities assistance fund" is created within the state treasury.
B. On January 31 of each year, the local government division of the department of finance and administration shall certify to the taxation and revenue department the population of each municipality in the state.
C. On or before June 10 of each year, the taxation
and revenue department shall compute the distribution share of
each qualifying municipality. The distribution share shall be
an amount equal to the product of the qualifying
municipality's population multiplied by the difference between
the statewide per capita average and the municipal per capita
average less the local tax effort of the qualifying
municipality; provided that the distribution share shall not
exceed [thirty thousand dollars ($30,000)] sixty thousand
dollars ($60,000); and provided that any municipality with a
population of less than ten thousand [which] that does not
qualify for a distribution or any qualifying municipality
[which] that qualifies for a distribution of less than fifteen
thousand dollars ($15,000) shall receive a distribution of
fifteen thousand dollars ($15,000); and provided further that
if the balance in the small cities assistance fund on the
preceding May 30 is less than the sum of the distribution
shares, [then] the taxation and revenue department shall first
reduce the distribution share of each municipality whose
distribution share is in excess of fifteen thousand dollars
($15,000) in an amount calculated according to the following
formula:
municipal distribution share
in excess of $15,000 X deficiency in fund sum of municipal distribution
shares in excess of $15,000
so long as no municipality's distribution share is reduced
below fifteen thousand dollars ($15,000), and until each
municipality's distribution share is reduced to fifteen
thousand dollars ($15,000), if necessary; and provided further
that if the sum of the distribution shares when each share is
reduced to fifteen thousand dollars ($15,000) is still in
excess of the balance in the small cities assistance fund on
the preceding May 30, [then] the taxation and revenue
department shall reduce each municipality's fifteen thousand
dollar ($15,000) distribution share by a percentage equal to a
percentage computed by dividing the amount by which the fund
is insufficient by the sum of all the distribution shares.
The taxation and revenue department shall certify the amount
of the distribution shares to the state treasurer.
D. The state treasurer shall distribute from the small cities assistance fund on or before June 15 of each year to each qualifying municipality the amount certified by the taxation and revenue department for each qualifying municipality for the period ending May 30 of the preceding year.
E. Immediately after distribution to municipalities from the small cities assistance fund but no later than June 30 of each year, the unexpended or unencumbered balance in the small cities assistance fund remaining after the distribution to the qualifying municipalities shall revert to the general fund.
F. Funds distributed under this section shall be placed in the general fund of the qualifying municipalities receiving distributions."
Section 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 1999.