By Jesse Jones — A new proposed City Council ordinance, O-26-16, known as the Community Enhancement Municipal Gross Receipts Tax and sponsored by Councilors Joaquín Baca and Brook Bassan and Mayor Tim Keller’s administration, would raise the city’s gross receipts tax (GRT), a local sales tax on goods and services, by .4875% — generating an estimated $119 million for new buildings and pay staff pay raises, sponsors say.
That would increase the total rate from 7.625% to 8.113% and place Albuqeurque among the top-tier of cities by total tax rate and above Rio Rancho (7.4375%) and near Santa Fe (8.1875%).
According to the ordinance, the revenue would pay for buildings, infrastructure and equipment, cover debt payments and fund the day-to-day work of city facilities. It would also help address employee pay gaps identified in a city compensation study and give the city flexibility to reduce fees for pools, golf courses and recreation programs.
Baca told City Desk the ordinance is modeled on a Quality‑of‑Life Enhancement Fund he sponsored he sponsored last year, but this version adds funding for city operations and the potential to lower certain municipal fees, including at golf courses and museums.
According to a tax analysis buried in the City’s Fiscal Year 2026 budget, “the City has imposed 1.4375% of the total 2.05% [local tax] cap not requiring voter approval, leaving 0.6125% of remaining municipal gross receipts tax capacity that does not require voter approval. The remaining municipal GRT increment not requiring a referendum would generate approximately $149.55 million.” By that math, this new tax could raise an estimated $119 million for the purposes listed by the sponsors.
He said a recent state law change created a deadline for introducing this type of tax.
If the ordinance is not introduced by the end of March, Baca said the city would have to wait another year to act, delaying funding for projects and operations by two years. The city will still use bonds for some projects, but this GRT approach is needed to meet the legal deadline.
“The current bill is almost like a placeholder, to be honest,” Baca said. “We’re going to flesh it out over the next couple of weeks, to really add something to it.”
Paul Gessing, of the Rio Grande Foundation, a conservative advocacy organization which has historically opposed tax increases, responded to the bill by saying, “While New Mexico’s politicians tout ‘affordability,’ the reality is that politicians in the state simply cannot get enough of our tax money,” Gessing said. “In 2017, the city spent $926,388,[000]. That number jumped to $1.5 billion by 2026. Yet, once again, there are plans afoot for another tax increase at City Hall.”
The ordinance is currently scheduled be heard at the March 16 council meeting.
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Typical affordability isn’t a term for taxpayers! They keep raising taxes, and we become poorer! They spend more, and it’s not enough! Oh let’s drop the fees at the golf courses or swimming pools! Why should everyone pay for those fees! Let the fees stay, and stop raising our taxes!! We have people on fixed incomes, but your concerned about fees for golf!! Our retired people would rather pay the golf fee then your higher gross receipts tax!! The gross receipts tax it’s self is highly inflationary! Sales tax plus a hidden income tax on labor!! Should be unconstitutional!!!!