CREATE ALL CITIES & COUNTIES FUND

SB 243 creates a new "All Cities and Counties Fund" to redirect 8% of New Mexico's gross receipts tax revenue (previously allocated to the state general fund) to local governments. Starting July 1, 2025, the state will transfer this revenue into the fund, with annual distributions to all cities and counties based on a formula considering population size and each area's share of the state's gross receipts tax revenue. The first distributions are scheduled for November 1, 2026, with subsequent annual payments thereafter. This policy ensures all municipalities and counties receive funding proportional to their population and tax contribution.