The Rio Grande Foundation, New Mexico’s only free market think tank, launched the #NoABQGaxTax education campaign today to inform Albuquerque residents about City Councilor Isaac Benton’s plan to impose a new tax on local motorists – a 2-cent per gallon gas tax.
The online campaign, centered around www.NoABQGasTax.com, will highlight the regressive nature of Benton’s proposed tax increase while alerting Albuquerque residents to the fact that the tax would not be dedicated to road construction or new river crossings, but to “rehabilitate transportation systems,” such as the despised Albuquerque Rapid Transit system.
The tax hike will be voted on by City Council on Monday, June 5, 2017.
“The tax hikes are coming fast and furious these days even though voters in liberal Santa Fe sent a clear message when they rejected Mayor Gonzales’ soda tax,” Rio Grande Foundation President Paul Gessing said. “New Mexicans don’t have an appetite for higher taxes. The Albuquerque City Council should follow Santa Fe’s lead and reject Councilor Benton’s tax increase.”
Benton’s is a new city tax that will be added on top of the 35.4 cents per gallon motorists already pay in taxes. Of course, earlier this year the Legislature passed a separate 10 cent per gallon increase that may be pushed once again in the upcoming special session. If these If these taxes pass, it will cost $7 in taxes alone to fill up a tank of gas.
Additional #NoABQGasTax Facts:
- Residents of Albuquerque already face the heaviest tax burdens as a percentage of income of any city in New Mexico, even Santa Fe.
- A report from the Brookings Institution stated high prices at the pump “do affect both consumers and the economy adversely, and they are especially harmful to lower- and moderate-income households.”
- Tax collection requires auditing and a collection policy, as well as an administrative appeals process. In other words, administration and compliance costs will eat up a significant portion of the revenue generated.
- This tax will not be dedicated to road construction or needed river crossings, but to “rehabilitate transportation systems.”
If this tax is adopted by City Council, it will appear on an already-crowded fall municipal election ballot in October.
The proposed ordinance is O-17-32. Note that section 2 dedication part is so broad that the money may be used for almost anything, including the hated ART project. Note also that there is no proposed sunset date for the new tax. Here is a copy of the proposed ordinance:
CITY of ALBUQUERQUE
TWENTY SECOND COUNCIL
COUNCIL BILL NO. O-17-32 ENACTMENT NO. ________________________
SPONSORED BY: Isaac Benton
ORDINANCE 1
IMPOSING A MUNICIPAL GASOLINE TAX OF TWO CENTS PER GALLON; 2 DEDICATING THE REVENUE GENERATED BY THE MUNICIPAL GASOLINE 3 TAX TO REHABILITATION OF TRANSPORTATION SYSTEMS FOR THE 4 BENEFIT OF THE CITY. 5
BE IT ORDAINED BY THE COUNCIL, THE GOVERNING BODY OF THE CITY OF 6 ALBUQUERQUE: 7
Section 1. Imposition of Tax. There is hereby imposed a tax of two cents 8 ($0.02) a gallon on all gasoline sold at retail within the boundaries of the City 9 of Albuquerque and upon which gasoline taxes are imposed in accordance 10 with the Gasoline Tax Act, Chapter 7, Article 13 NMSA 1978. 11
The tax imposed under this ordinance is pursuant to the County and 12 Municipal Gasoline Tax Act as it now exists or as it may be amended and shall 13 be known as the “Municipal Gasoline Tax.” The tax imposed by this section 14 shall be in addition to the tax imposed under the Gasoline Tax Act by the State 15 of New Mexico. 16
Section 2. Dedication. Revenue from the Municipal Gasoline Tax will be 17 used to fund the rehabilitation of transportation systems for the benefit of the 18 City. Rehabilitation projects are those required to extend the service life of an 19 existing facility, improve its operation, improve safety, or restore original 20 performance or capacity. Rehabilitation projects shall, in accordance with the 21 standards in the Complete Streets ordinance, examine the entire right-of-way 22 to enhance usefulness for all transportation and mobility modes, including 23 improvements for automobiles as well as for transit, pedestrians, and 24 bicyclists. Rehabilitation projects shall prioritize the improvement of 25 connections between the various transportation and mobility modes and shall 26
[Bracketed/Underscored Material] – New
[Bracketed/Strikethrough Material] – Deletion
2
improve conditions for pedestrians. No f 1 unds shall be expended to enhance
2 aesthetics on interstate highways.
3 Section 3. Within sixty days of the adoption of this ordinance, the City
4 Council shall pass an election resolution submitting the question of levying
5 the tax to the qualified electors of the City of Albuquerque.
6 Section 4. Effective Date. The effective date of the Municipal Gasoline Tax
7 shall be either January 1, or July 1, whichever date occurs first after the
8 expiration of three months from the date an election is held on the question of
9 approving the ordinance, in which the results of the election are certified to be
10 in favor of the ordinance’s adoption and a certified copy of the adopted
11 ordinance is submitted to the Taxation and Revenue Department.
12 Section 5. Severability Clause. If any section, paragraph, sentence, clause,
13 word or phrase of this ordinance is for any reason held to be invalid or
14 unenforceable by any court of competent jurisdiction, such decision shall not
15 affect the validity of the remaining provisions of this ordinance. The Council
16 hereby declares that it would have passed this ordinance and each section,
17 paragraph, sentence, clause, word or phrase thereof irrespective of any
18 provision being declared unconstitutional or otherwise invalid.
19 Section 6. Compilation. The ordinance shall be incorporated in and made
20 part of the Revised Ordinances of Albuquerque, New Mexico, 1994.
21 Section 7. Effective Date. This ordinance shall take effect five days after
22 publication by title and general summary.