HB 160

                                1  HOUSE BILL 160
                                2     57TH LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 2026
                                3  INTRODUCED BY
                                4      Elaine Sena Cortez and Javier Martínez and Gail Armstrong
                                5  and Jonathan A. Henry
                                6
                                7
                                8
                                9
                                10  AN ACT
                                11   RELATING TO TAXATION; CREATING THE ALL CITIES AND COUNTIES FUND
                                12   TO TRANSFER A PORTION OF GROSS RECEIPTS TAX REVENUE TO
                                13   MUNICIPALITIES AND COUNTIES; DISTRIBUTING A PORTION OF GROSS
                                14   RECEIPTS TAX REVENUE TO THE ALL CITIES AND COUNTIES FUND.
                                15
                                16   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
[bracketed material] = delete
                                17        SECTION 1.     [NEW MATERIAL] ALL CITIES AND COUNTIES FUND--
underscored material = new
                                18   CREATED.--
                                19  A.   The "all cities and counties fund" is created in
                                20   the state treasury.
                                21  B.   The taxation and revenue department shall
                                22   calculate an amount to be transferred to each municipality in
                                23   an amount equal to the result of the following formula, where
                                24   "municipality" is the municipality receiving the transfer and
                                25   "county" is the county in which the municipality is located;
                                     .232973.1
                                1    provided that if a municipality is located in more than one
                                2    county, a transfer shall be calculated for each county in which
                                3    the municipality is located:
                                4  municipality population * (0.7 * (fund balance/state
                                5    population) + 0.3 * (((county EGRTR/all county EGRTR) *
                                6    fund balance)/county population)).
                                7  C.   The taxation and revenue department shall
                                8    calculate an amount to be transferred to each county in an
                                9    amount equal to the result of the following formula:
                                10        county area population * (0.7 * (fund balance/state
                                11   population) + 0.3 * (((county EGRTR/all county EGRTR) *
                                12   fund balance)/county population)).
                                13  D.   By October 1, 2027 and October 1 of each year
                                14   thereafter, the taxation and revenue department shall certify
                                15   to the state treasurer the amounts to be transferred to each
                                16   municipality and county as calculated pursuant to Subsections B
[bracketed material] = delete
                                17   and C of this section.
underscored material = new
                                18  E.   By November 1, 2027 and November 1 of each year
                                19   thereafter, the state treasurer shall transfer from the all
                                20   cities and counties fund to each municipality and county the
                                21   amounts certified by the taxation and revenue department.
                                22  F.   As used in this section:
                                23  (1)   "all county EGRTR" means the equalized
                                24   gross receipts tax revenue of all counties;
                                25  (2)   "county area population" means the
                                     .232973.1
                                                                    - 2 -
                                1    population in that portion of a county located outside the
                                2    boundaries of any municipality according to the most recent
                                3    estimate of the resident population for incorporated places as
                                4    published by the United States census bureau, except that for H
                                5    class counties, "county area population" means the population
                                6    of the entire county;
                                7  (3)     "county EGRTR" means the equalized gross
                                8    receipts tax revenue of the county receiving a transfer
                                9    pursuant to this section or, in the case of a municipality
                                10   receiving a transfer pursuant to this section, of the county in
                                11   which the municipality is located;
                                12  (4)     "county population" means the population
                                13   of a county according to the most recent estimate of the
                                14   resident population of incorporated places as published by the
                                15   United States census bureau;
                                16  (5)     "equalized gross receipts tax revenue"
[bracketed material] = delete
                                17   means the net receipts received by the taxation and revenue
underscored material = new
                                18   department in the prior fiscal year, subject to any increase or
                                19   decrease made pursuant to Section 7-1-6.15 NMSA 1978,
                                20   attributable to a county local option gross receipts tax rate
                                21   of one-fourth percent;
                                22  (6)     "fund balance" means the amount of money
                                23   in the all cities and counties fund as of the end of the fiscal
                                24   year that precedes the date a transfer is required to be made
                                25   pursuant to this section;
                                     .232973.1
                                                                    - 3 -
                                1  (7)   "municipality population" means the
                                2    population of a municipality according to the most recent
                                3    estimate of the resident population for incorporated places as
                                4    published by the United States census bureau; provided that if
                                5    a municipality is located in more than one county,
                                6    "municipality population" means the population of the
                                7    municipality within each of the counties; and
                                8  (8)   "state population" means the population of
                                9    the state of New Mexico according to the most recent estimate
                                10   of the resident population for incorporated places as published
                                11   by the United States census bureau.
                                12        SECTION 2.     A new section of the Tax Administration Act is
                                13   enacted to read:
                                14        "[NEW MATERIAL] DISTRIBUTION--ALL CITIES AND COUNTIES
                                15   FUND.--A distribution pursuant to Section 7-1-6.1 NMSA 1978
                                16   shall be made to the all cities and counties fund in an amount
[bracketed material] = delete
                                17   equal to eight percent of the net receipts attributable to the
underscored material = new
                                18   gross receipts tax distributable to the general fund."
                                19        SECTION 3.     EFFECTIVE DATE.--The effective date of the
                                20   provisions of this act is July 1, 2026.
                                21  - 4 -
                                22
                                23
                                24
                                25
                                     .232973.1