Albuquerque city councilors propose massive GRT increase

Fresh off a legislative session during which New Mexicans saw increased vehicle registration fees and business tax hikes Albuquerque’s City Council is going to be considering a massive 0.4875% increase in the local gross receipts tax. The tax hike has been introduced by councilors Joaquín Baca, Brook Bassan. Although Council elections are non-partisan Bassan is widely considered a Republican while Baca is a Democrat. The current total tax rate is 7.625% in the City meaning the tax hike would take the City to 8.113 percent. Neighboring Rio Rancho which also has substantially lower property taxes has a 7.4375% GRT.

The planned GRT hike would be a 6.4% increase in the overall GRT rate. But, Albuquerque currently collects GRT at a rate of 2.3125% meaning that from the City’s perspective this is a massive 21% tax hike in Albuquerque’s gross receipts tax. 

While New Mexico’s politicians tout “affordability” the reality is that politicians in the State simply cannot get enough of our tax money. In 2017 the City spent $926,388. That number jumped to $1.5 billion by 2026. Yet, once again there are plans afoot for another tax increase at City Hall. As a reminder the gross receipts tax is considered a “regressive” tax meaning that it impacts lower income taxpayers the most.