1. A. A distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the Local Economic Development Act fund equal to the following amounts of the following taxes imposed and paid on the expenses related to the construction of the qualifying entity's economic development project, as determined pursuant to Section 5-10-17 NMSA 1978:

   1. (1) fifty percent of the net receipts attributable to state gross receipts tax and the state compensating tax; and
   2. (2) fifty percent of the net receipts attributable to the local option gross receipts tax and county compensating tax imposed by a county and local option gross receipts tax and municipal compensating tax imposed by a municipality.
2. B. The department shall withhold an administrative fee of three percent of the net amount to be distributed pursuant to Subsection A of this section, and the money from the fee shall be remitted to the state treasurer for deposit in the general fund each month.

3. C. As used in this section:

   1. (1) "economic development project" means "economic development project" as used in the Local Economic Development Act [Chapter 5, Article 10 NMSA 1978]; and
   2. (2) "qualifying entity" means "qualifying entity" as used in the Local Economic Development Act.

History: Laws 2021 (1st S.S.), ch. 2, § 5; 2024, ch. 59, § 6.

ANNOTATIONS

The 2024 amendment, effective July 1, 2025, required the taxation and revenue department to withhold an administrative fee of three percent of the net amount of local economic development act distributions, and made certain technical amendments; in the section heading, added "administrative fee"; in Subsection A, in the introductory clause, after "Section", deleted "2 of this 2021 act" and added "5-10-17 NMSA 1978; and added a new Subsection B and redesignated former Subsection B as Subsection C.