OK, But who or what decides gets "redistributed" for example to Guerrero and further down the food chain, Zihuatanejo?

Right now it's Andrés Manuel López Obrador. Presidente de los Estados Unidos Mexicanos.

From your e-mail reply it appears you misunderstood. The Cámara de Diputados approves an annual budget. The Presidente proposes a budget. Currently the Cámara de Diputados has a majority of the same party as the Presidente, so pretty much anything he wants he gets, though he may have a bit of difficulty getting his proposals for a Guardia Nacional approved even though it is established in the Constitución.

The Estados and Municipios can raise their own taxes. Our Municipio can barely pay its own wages with the money it raises, so it is dependent on the Estado and the Federación. If our Diputados are doing their jobs correctly the they are trying to push for projects in their respective districts. But Presidente Andrés Manuel López Obrador is who is wielding the power currently more than any other president since the fall of the PRI from its "perfect dictatorship" back in 2000 with the election of Presidente Vicente Fox. He is within his right to determine how to distribute the federal resources within the limits of the Constitución and as long as our Cámara de Diputados backs him, as they do.

Your comment about Venezuela sounds like conservative fearmongering. We are in no danger of becoming another Venezuela under this presidente. Maduro maintains his power thanks to corruption and a military seeking to protect its privileges and afraid of being tried for its own corrupt practices including the narco trade, which is what makes Guaidó's offer of amnesty so important to them, but I digress. AMLO is combating corruption like no presidente ever has. We are nowhere remotely close to going down the same path as Venezuela.

Constitución Política de los Estados Unidos Mexicanos

OK, But who or what decides gets "redistributed" for example to Guerrero and further down the food chain, Zihuatanejo?

Right now it's Andrés Manuel López Obrador. Presidente de los Estados Unidos Mexicanos.

I know this tax at 16% is applied to most purchases I make of building materials etc. It can add up to a sizable chunk of change. What I don't know is where do the proceeds go, how are they distributed and is there a list of exempt items somewhere?
Gracias

IVA is a federal tax. It all goes to the federal government for redistribution.

Conoce más sobre el IVA - SAT