SENATE BILL 223

54th legislature - STATE OF NEW MEXICO - second session, 2020

INTRODUCED BY

William P. Soules and Mimi Stewart

 

 

 

 

 

AN ACT

RELATING TO PUBLIC FINANCE; PROVIDING THAT A DISTRIBUTION OF REVENUE FROM THE OIL AND GAS EMERGENCY SCHOOL TAX WILL BE MADE TO THE TAX STABILIZATION RESERVE ONLY WHEN STATE RESERVE FUNDS ARE AT CERTAIN LEVELS.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. Section 7-1-6.61 NMSA 1978 (being Laws 2017 (1st S.S.), Chapter 3, Section 3) is amended to read:

     "7-1-6.61. DISTRIBUTION--TAX STABILIZATION RESERVE FROM THE OIL AND GAS EMERGENCY SCHOOL TAX.--

          A. A distribution pursuant to Section 7-1-6.20 NMSA 1978 shall be made to the tax stabilization reserve in an amount [as] calculated [pursuant to Subsection B of this section.

          B. if] as follows; provided that the year-to-date amount plus the current net receipts exceeds the annual average amount. [the excess, shall be distributed to the tax stabilization reserve. If there is not an excess amount, no distribution shall be made to the tax stabilization reserve. Each month the department shall make the calculation to determine if an excess amount should be distributed] If the balance in the state reserve funds in the current fiscal year prior to the distribution is:

                (1) less than twenty percent of the aggregate recurring appropriations for the current fiscal year, one hundred percent of the excess shall be distributed;

                (2) greater than or equal to twenty percent but less than twenty-five percent of the aggregate recurring appropriations for the current fiscal year, fifty percent of the excess shall be distributed;

                (3) greater than or equal to twenty-five percent but less than thirty percent of the aggregate recurring appropriations for the current fiscal year, twenty-five percent of the excess shall be distributed; and

                (4) greater than or equal to thirty percent of the aggregate recurring appropriations for the current fiscal year, none of the excess shall be distributed.

          B. The department of finance and administration shall make the calculation to determine if an excess amount should be distributed.

          C. As used in this section:

                (1) "annual average amount" means the total net receipts attributable to the tax imposed pursuant to Section 7-31-4 NMSA 1978 and distributed pursuant to Section 7-1-6.20 NMSA 1978 in the immediately preceding five fiscal years, divided by five;

                (2) "state reserve funds" means the general fund balances, including all authorized revenues and transfers to the general fund and balances in the appropriation contingency fund, the general fund operating reserve, the tax stabilization reserve, the tobacco settlement permanent fund and the state-support reserve fund; and

                [(2)] (3) "year-to-date amount" means the cumulative year-to-date net receipts attributable to the tax imposed pursuant to Section 7-31-4 NMSA 1978 and distributed to the general fund in the prior months of the current fiscal year."

     SECTION 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2020.

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