A. The "small counties assistance fund" is created within the state treasury.

B. On or before September 1, 2003 and on or before September 1 of each subsequent year, the demographer shall certify in writing to the department of finance and administration the population of the state and of each county as of June 30 of the year.

C. On or before September 15, 2003 and on or before September 15 of each subsequent year, the secretary of finance and administration shall certify to the state treasurer with respect to each qualifying county:

(1) its population as certified by the demographer;

(2) its total valuation for the preceding property tax year; and

(3) the distribution amount calculated for it.

D. The distribution amount for each qualifying county shall be determined for 2003 and each subsequent year in accordance with the following table; provided that the bracket amounts in the first two columns of the table shall be adjusted annually after 2003 by the adjustment factor. The bracket amounts in the last column shall be adjusted annually after 2005 by the inflation factor and, in 2011 and subsequent years, shall be adjusted by the tax rate factor. The department of finance and administration may round the results of the adjustments made pursuant to this subsection to the nearest one thousand dollars ($1,000).

If the county's total valuation for the preceding property tax year is:

at least:

but less than:

and the county population is:

then the distribution amount is:

$ 0

$100,000,000

under 1,000

$515,000

$ 0

$100,000,000

at least 1,000 but under 4,000

$370,000

$ 0

$100,000,000

at least 4,000

$285,000

$100,000,000

$230,000,000

under 12,000

$200,000

$100,000,000

$230,000,000

at least 12,000

$145,000

$230,000,000

$1,400,000,000

under 48,000

$85,000.

E. If the balance in the small counties assistance fund as of the preceding August 31 exceeds the sum of the distributions to be made to qualifying counties pursuant to the provisions of Subsection D of this section, the department of finance and administration shall increase the distribution amount for each county receiving a distribution amount pursuant to the provisions of Subsection D of this section by:

(1) fifty thousand dollars ($50,000) if the county has imposed and has in effect on July 1 of the year in which the distribution is to be made a county gross receipts tax at a rate of at least one-eighth percent; provided that the ordinance imposing the increment shall dedicate the revenue from the increment:

(a) for the purpose of operating, maintaining, constructing, purchasing, furnishing, equipping, rehabilitating, expanding or improving a judicial-correctional or a county correctional facility or the grounds of a judicial-correctional or county correctional facility, including acquiring and improving parking lots, landscaping or any combination of the foregoing;

(b) for the purpose of transporting or extraditing prisoners; or

(c) to payment of principal and interest on revenue bonds or refunding bonds issued pursuant to Section 4-62-1 NMSA 1978;

(2) twenty thousand dollars ($20,000) if the county has imposed and has in effect on July 1 of the year in which the distribution is to be made a county gross receipts tax increment of one-sixteenth percent; or

(3) seventy thousand dollars ($70,000) if the county has met the requirements of Paragraphs (1) and (2) of this subsection.

F. If the balance in the small counties assistance fund as of the preceding August 31 is less than the sum of the distributions determined pursuant to Subsection D of this section plus the distribution increases authorized pursuant to Subsection E of this section, the distribution increases pursuant to Subsection E of this section shall be proportionately reduced.

G. If the balance in the small counties assistance fund as of the preceding August 31 is less than the sum of the distributions to be made to qualifying counties, the department of finance and administration shall reduce each qualifying county's calculated distribution by a percentage computed by dividing the amount by which the fund is insufficient by the sum of all the calculated distributions and shall certify the reduced amounts as the qualifying counties' distributions.

H. Any interest accruing from the temporary investment of the small counties assistance fund shall be credited to the general fund.

I. On or before September 30, 2003 and on or before September 30 of each subsequent year, the state treasurer shall distribute to each county for whom a distribution has been certified for that year the amount certified for that county for that year. If the balance in the fund as of the preceding August 31 exceeds the sum of certified amounts distributed, the difference shall revert to the general fund.

J. If any date specified in Subsection B, C or I of this section falls on a Saturday, Sunday or legal holiday, any action required to be performed as provided in those subsections is timely if performed on the next day that is not a Saturday, Sunday or legal holiday.

History: Laws 1982, ch. 44, § 3; 1983, ch. 214, § 4; 1984, ch. 24, § 1; 1987, ch. 205, § 2; 1988, ch. 104, § 1; 1993, ch. 348, § 2; 2003, ch. 217, § 3; 2004, ch. 105, § 2; 2005, ch. 183, § 2; 2010 (2nd S.S.), ch. 7, § 2; 2012, ch. 5, § 2; 2019, ch. 274, § 3.

Cross references. — For distributions from tax administration suspense fund to small counties assistance fund, see 7-1-6.5 NMSA 1978.

The 2019 amendment, effective July 1, 2019, provided for a larger distribution from the small counties assistance fund for certain counties; and in Subsection E, Paragraph E(1), after "at least one-eighth percent", added "provided that the ordinance imposing the increment shall dedicate the revenue from the increment" and added Subparagraphs E(1)(a) through E(1)(c).

The 2012 amendment, effective July 1, 2013, increased the distribution amount for counties when the sum of the distributions pursuant to Subsection D is less than the balance in the small counties assistance fund; and in Subsection E, in Paragraph (1), at the beginning of the sentence, deleted "thirty-five thousand dollars ($35,000)" and added "fifty thousand dollars ($50,000)"; in Paragraph (2), at the beginning of the sentence, deleted "fifteen thousand dollars ($15,000)" and added "twenty thousand dollars ($20,000)"; and in Paragraph (3), at the beginning of the sentence, deleted "fifty thousand dollars ($50,000)" and added "seventy thousand dollars ($70,000)".

The 2010 (2nd S.S.) amendment, effective July 1, 2010, in Subsection D, in the second sentence, after "inflation factor", added the remainder of the sentence.

The 2005 amendment, effective June 17, 2005, in Subsection D, provided that the bracket amount in the last column shall be adjusted annually by the inflation factor, that the department may round adjustments to the nearest one thousand dollars and increases the amount of the distributions; added Subsection E to provide for the increase in distributions from the fund of excess balances in the fund; added Subsection F to provide for a proportional reduction in distributions if the balance in the fund is less than the distributions determined under Subsection D plus the distribution increases authorized under Subsection E; and modified Subsection I to provide that if the balance in the fund exceeds the sum of certified amounts distributed, the difference shall revert to the general fund.

The 2004 amendment, effective May 19, 2004, amended Subsection D to delete "same fraction used to adjust the ceiling valuation pursuant to the provisions of Paragraph (2) of Subsection A of Section 4-61-2 NMSA 1978" and substitute in its place "adjustment factor" and to increase $210,000,000 to $230,000,000 in three places and to change $45,000 to $50,000 at the end of the subsection.

The 2003 amendment, effective June 20, 2003, rewrote the section.

The 1993 amendment, effective July 1, 1993, rewrote Subsections C and D.