The proposed bill establishes the "All Cities and Counties Fund" within the state treasury, aimed at distributing a portion of gross receipts tax revenue to municipalities and counties in New Mexico. The bill outlines a formula for calculating the amounts to be transferred to each municipality and county based on their respective populations and equalized gross receipts tax revenue. The Taxation and Revenue Department is tasked with certifying these amounts annually, with transfers occurring by November 1 of each year starting in 2026.

Additionally, the bill mandates that a distribution to the All Cities and Counties Fund will be made, amounting to eight percent of the net receipts from the gross receipts tax that are allocated to the general fund. The effective date for the provisions of this act is set for July 1, 2025.