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 Taxation and Revenue Department is tasked with calculating the amounts to be transferred to each municipality and county based on specific formulas that consider population and equalized gross receipts tax revenue. The bill outlines a timeline for certification and transfer of funds, with the first transfers scheduled for November 1, 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 provisions of this act are set to take effect on July 1, 2025.