NMSA 1978, § 7-1-6.47 — 7-1-6.47

Distribution to counties; offset for food deduction and
health care practitioner services deduction.

# A.

For a county that did not have in effect on June 30, 2019 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 the county in an amount,
subject to any increase or decrease made pursuant to Section 7-1-6.15 NMSA 1978,
equal to the applicable maximum distribution for the county.

# 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
applicable maximum distribution multiplied by the following percentages:
(1) on or after July 1, 2025 and prior to July 1, 2026, twenty-eight percent;
(2) on or after July 1, 2026 and prior to July 1, 2027, twenty-one percent;
(3) on or after July 1, 2027 and prior to July 1, 2028, fourteen percent;
(4) on or after July 1, 2028 and prior to July 1, 2029, seven percent; and
(5) on and after July 1, 2029, zero percent.

# C.

A distribution pursuant to 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.

# D.

If the changes made by Laws 2022, Chapter 47 to the distributions made
pursuant to 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, 2022 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, 2022.

# 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].

# F.

For the purposes of this section, "maximum distribution" means:
(1) for a county that did not have in effect on June 30, 2019 a county hold
harmless gross receipts tax and that has a population of less than forty-eight thousand
according to the most recent federal decennial census, the sum of:
(a) the total deductions claimed pursuant to Sections 7-9-92 and 7-9-93
NMSA 1978 for the month by taxpayers from business locations sourced to a
municipality in the county pursuant to Section 7-1-14 NMSA 1978 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
(b) the total deductions claimed pursuant to Sections 7-9-92 and 7-9-93
NMSA 1978 for the month by taxpayers from business locations sourced to the county
but not sourced to a municipality pursuant to Section 7-1-14 NMSA 1978 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 sourced to a municipality pursuant to Section 7-
1-14 NMSA 1978; and
(2) for a county not described in Paragraph (1) of this subsection, the sum of:
(a) the total deductions claimed pursuant to Sections 7-9-92 and 7-9-93
NMSA 1978 for the month by taxpayers from business locations sourced to a
municipality in the county pursuant to Section 7-1-14 NMSA 1978 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; and
(b) the total deductions claimed pursuant to Sections 7-9-92 and 7-9-93
NMSA 1978 for the month by taxpayers from business locations sourced to the county
but not sourced to a municipality pursuant to Section 7-1-14 NMSA 1978 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 sourced to a municipality pursuant to
Section 7-1-14 NMSA 1978.