A. Beginning on September 15, 1989 and on September 15 of each year thereafter, the department shall distribute to any county that has imposed or continued in effect during the state’s preceding fiscal year a county gross receipts tax pursuant to section 7-20E-9 N.M. Stat. Ann. an amount equal to:

Terms Used In New Mexico Statutes 7-1-6.16

  • Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.

(1)     the product of a fraction, the numerator of which is the county’s population and the denominator of which is the state’s population, multiplied by the annual sum for the county; less (2)     the net receipts received by the department during the report year, including any increase or decrease made pursuant to Section 7-1-6.15 N.M. Stat. Ann., attributable to the county gross receipts tax at a rate of one-eighth percent; provided that for any month in the report year, if no county gross receipts tax was in effect in the county in the previous month, the net receipts, for the purposes of this section, for that county for that month shall be zero.

B. If the amount determined by the calculation in Subsection A of this section is zero or a negative number for a county, no distribution shall be made to that county.

C. As used in this section:

(1)     “annual sum” means for each county the sum of the monthly amounts for those months in the report year that follow a month in which the county had in effect a county gross receipts tax;

(2)     “monthly amount” means an amount equal to the product of:

(a) the net receipts received by the department in the month attributable to the state gross receipts tax plus five percent of the total amount of deductions claimed pursuant to Section 7-9-92 N.M. Stat. Ann. for the month plus five percent of the total amount of deductions claimed pursuant to Section 7-9-93 N.M. Stat. Ann. for the month; and

(b) a fraction, the numerator of which is one-eighth percent and the denominator of which is the tax rate imposed by Section 7-9-4 N.M. Stat. Ann. in effect on the last day of the previous month;

(3)     “population” means the most recent official census or estimate determined by the United States census bureau for the unit or, if neither is available, the most current estimated population for the unit provided in writing by the bureau of business and economic research at the university of New Mexico; and

(4)     “report year” means the twelve-month period ending on the July 31 immediately preceding the date upon which a distribution pursuant to this section is required to be made.

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