A. For a county that has not elected to impose a county hold harmless gross receipts tax through an ordinance and that has a population of less than forty-eight thousand according to the most recent federal decennial census, a distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to a county in an amount, subject to any increase or decrease made pursuant to Section 7-1-6.15 NMSA 1978, equal to the sum of:
(1) the total deductions claimed pursuant to Section 7-9-92 NMSA 1978 for the month by taxpayers from business locations within a municipality in the county multiplied by the combined rate of all county local option gross receipts taxes in effect for the month that are imposed throughout the county;
(2) the total deductions claimed pursuant to Section 7-9-92 NMSA 1978 for the month by taxpayers from business locations in the county but not within a municipality multiplied by the combined rate of all county local option gross receipts taxes in effect for the month that are imposed in the county area not within a municipality;
(3) the total deductions claimed pursuant to Section 7-9-93 NMSA 1978 for the month by taxpayers from business locations within a municipality in the county multiplied by the combined rate of all county local option gross receipts taxes in effect for the month that are imposed throughout the county; and
(4) the total deductions claimed pursuant to Section 7-9-93 NMSA 1978 for the month by taxpayers from business locations in the county but not within a municipality multiplied by the combined rate of all county local option gross receipts taxes in effect for the month that are imposed in the county area not within a municipality.
B. For a county not described in Subsection A of this section, a distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the county in an amount, subject to any increase or decrease made pursuant to Section 7-1-6.15 NMSA 1978, equal to the sum of:
(1) the total deductions claimed pursuant to Section 7-9-92 NMSA 1978 for the month by taxpayers from business locations within a municipality in the county multiplied by the combined rate of all county local option gross receipts taxes in effect on January 1, 2007 that are imposed throughout the county in the following percentages:
(a) prior to July 1, 2015, one hundred percent;
(b) on or after July 1, 2015 and prior to July 1, 2016, ninety-four percent;
(c) on or after July 1, 2016 and prior to July 1, 2017, eighty-eight percent;
(d) on or after July 1, 2017 and prior to July 1, 2018, eighty-two percent;
(e) on or after July 1, 2018 and prior to July 1, 2019, seventy-six percent;
(f) on or after July 1, 2019 and prior to July 1, 2020, seventy percent;
(g) on or after July 1, 2020 and prior to July 1, 2021, sixty-three percent;
(h) on or after July 1, 2021 and prior to July 1, 2022, fifty-six percent;
(i) on or after July 1, 2022 and prior to July 1, 2023, forty-nine percent;
(j) on or after July 1, 2023 and prior to July 1, 2024, forty-two percent;
(k) on or after July 1, 2024 and prior to July 1, 2025, thirty-five percent;
(l) on or after July 1, 2025 and prior to July 1, 2026, twenty-eight percent;
(m) on or after July 1, 2026 and prior to July 1, 2027, twenty-one percent;
(n) on or after July 1, 2027 and prior to July 1, 2028, fourteen percent; and
(o) on or after July 1, 2028 and prior to July 1, 2029, seven percent;
(2) the total deductions claimed pursuant to Section 7-9-92 NMSA 1978 for the month by taxpayers from business locations in the county but not within a municipality multiplied by the combined rate of all county local option gross receipts taxes in effect on January 1, 2007 that are imposed in the county area not within a municipality in the following percentages:
(a) prior to July 1, 2015, one hundred percent;
(b) on or after July 1, 2015 and prior to July 1, 2016, ninety-four percent;
(c) on or after July 1, 2016 and prior to July 1, 2017, eighty-eight percent;
(d) on or after July 1, 2017 and prior to July 1, 2018, eighty-two percent;
(e) on or after July 1, 2018 and prior to July 1, 2019, seventy-six percent;
(f) on or after July 1, 2019 and prior to July 1, 2020, seventy percent;
(g) on or after July 1, 2020 and prior to July 1, 2021, sixty-three percent;
(h) on or after July 1, 2021 and prior to July 1, 2022, fifty-six percent;
(i) on or after July 1, 2022 and prior to July 1, 2023, forty-nine percent;
(j) on or after July 1, 2023 and prior to July 1, 2024, forty-two percent;
(k) on or after July 1, 2024 and prior to July 1, 2025, thirty-five percent;
(l) on or after July 1, 2025 and prior to July 1, 2026, twenty-eight percent;
(m) on or after July 1, 2026 and prior to July 1, 2027, twenty-one percent;
(n) on or after July 1, 2027 and prior to July 1, 2028, fourteen percent; and
(o) on or after July 1, 2028 and prior to July 1, 2029, seven percent;
(3) the total deductions claimed pursuant to Section 7-9-93 NMSA 1978 for the month by taxpayers from business locations within a municipality in the county multiplied by the combined rate of all county local option gross receipts taxes in effect on January 1, 2007 that are imposed throughout the county in the following percentages:
(a) prior to July 1, 2015, one hundred percent;
(b) on or after July 1, 2015 and prior to July 1, 2016, ninety-four percent;
(c) on or after July 1, 2016 and prior to July 1, 2017, eighty-eight percent;
(d) on or after July 1, 2017 and prior to July 1, 2018, eighty-two percent;
(e) on or after July 1, 2018 and prior to July 1, 2019, seventy-six percent;
(f) on or after July 1, 2019 and prior to July 1, 2020, seventy percent;
(g) on or after July 1, 2020 and prior to July 1, 2021, sixty-three percent;
(h) on or after July 1, 2021 and prior to July 1, 2022, fifty-six percent;
(i) on or after July 1, 2022 and prior to July 1, 2023, forty-nine percent;
(j) on or after July 1, 2023 and prior to July 1, 2024, forty-two percent;
(k) on or after July 1, 2024 and prior to July 1, 2025, thirty-five percent;
(l) on or after July 1, 2025 and prior to July 1, 2026, twenty-eight percent;
(m) on or after July 1, 2026 and prior to July 1, 2027, twenty-one percent;
(n) on or after July 1, 2027 and prior to July 1, 2028, fourteen percent; and
(o) on or after July 1, 2028 and prior to July 1, 2029, seven percent; and
(4) the total deductions claimed pursuant to Section 7-9-93 NMSA 1978 for the month by taxpayers from business locations in the county but not within a municipality multiplied by the combined rate of all county local option gross receipts taxes in effect on January 1, 2007 that are imposed in the county area not within a municipality in the following percentages:
(a) prior to July 1, 2015, one hundred percent;
(b) on or after July 1, 2015 and prior to July 1, 2016, ninety-four percent;
(c) on or after July 1, 2016 and prior to July 1, 2017, eighty-eight percent;
(d) on or after July 1, 2017 and prior to July 1, 2018, eighty-two percent;
(e) on or after July 1, 2018 and prior to July 1, 2019, seventy-six percent;
(f) on or after July 1, 2019 and prior to July 1, 2020, seventy percent;
(g) on or after July 1, 2020 and prior to July 1, 2021, sixty-three percent;
(h) on or after July 1, 2021 and prior to July 1, 2022, fifty-six percent;
(i) on or after July 1, 2022 and prior to July 1, 2023, forty-nine percent;
(j) on or after July 1, 2023 and prior to July 1, 2024, forty-two percent;
(k) on or after July 1, 2024 and prior to July 1, 2025, thirty-five percent;
(l) on or after July 1, 2025 and prior to July 1, 2026, twenty-eight percent;
(m) on or after July 1, 2026 and prior to July 1, 2027, twenty-one percent;
(n) on or after July 1, 2027 and prior to July 1, 2028, fourteen percent; and
(o) on or after July 1, 2028 and prior to July 1, 2029, seven percent.
C. The distribution pursuant to Subsections A and B of this section is in lieu of revenue that would have been received by the county but for the deductions provided by Sections 7-9-92 and 7-9-93 NMSA 1978. The distribution shall be considered gross receipts tax revenue and shall be used by the county in the same manner as gross receipts tax revenue, including payment of gross receipts tax revenue bonds. A distribution pursuant to this section to a county not described in Subsection A of this section or to a county that has imposed a gross receipts tax through an ordinance that does not provide a deduction contained in the Gross Receipts and Compensating Tax Act [Chapter 7, Article 9 NMSA 1978] shall not be made on or after July 1, 2029.
D. If the reductions made by this 2013 act to the distributions made pursuant to Subsections A and B of this section impair the ability of a county to meet its principal or interest payment obligations for revenue bonds that are outstanding prior to July 1, 2013 and that are secured by the pledge of all or part of the county's revenue from the distribution made pursuant to this section, then the amount distributed pursuant to this section to that county shall be increased by an amount sufficient to meet the required payment; provided that the total amount distributed to that county pursuant to this section does not exceed the amount that would have been due that county pursuant to this section as it was in effect on June 30, 2013.
E. A distribution pursuant to this section may be adjusted for a distribution made to a tax increment development district with respect to a portion of a gross receipts tax increment dedicated by a county pursuant to the Tax Increment for Development Act [Chapter 5, Article 15 NMSA 1978].
History: Laws 2004, ch. 116, § 2; 2006, ch. 75, § 34; 2007, ch. 331, § 3; 2013, ch. 160, § 2.
ANNOTATIONSThe 2013 amendment, effective July 1, 2013, offset the effects of revenue reductions from decreasing the corporate income tax rate and the use of a single sales factor by phasing out certain local government hold harmless provisions over a fifteen-year period; in Subsection A, at the beginning of the sentence, added the language up to "a distribution pursuant to Section 7-1-6.1 NMSA 1978"; deleted former Paragraph (1) of Subsection A, which provided a distribution for counties having a population of less than forty eight thousand; in Subsection B, after "described in", deleted "Paragraph (1) of this" and after "Section", added the remainder of the sentence; in Paragraph (1) of Subsection B, in the introductory sentence, after "imposed throughout the county", added "in the following percentages" and added Subparagraphs (a) through (o); in Paragraph (2) of Subsection B, in the introductory sentence, after "county area not within a municipality", added "in the following percentages" and added Subparagraphs (a) through (o); in Paragraph (3) of Subsection B, in the introductory sentence, after "imposed throughout the county", added "in the following percentages" and added Subparagraphs (a) through (o); in Paragraph (4) of Subsection B, in the introductory sentence, after "county area not within a municipality", added "in the following percentages" and added Subparagraphs (a) through (o); in Subsection C, in the first sentence, after "pursuant to", changed "Subsection A" to "Subsections A and B", and added the third sentence; and added Subsection D.
The 2007 amendment, effective July 1, 2007, amended Subsection A to provide separate distributions to offset for food deductions and health care practitioner services deductions for counties having a population of less than 48,000 in Paragraph (1) and all other counties as provided in new Paragraph (2).
The 2006 amendment, effective March 6, 2006, added Subsection C to provide an adjustment for a distribution to a tax increment development district.