The trend is NOT Albuquerque’s friend when it comes to the Gross Receipts Tax

Gross Receipts Tax (GRT) rates are up all over New Mexico thanks in part to state policies, but a vast majority of hikes in the local rates can be placed at the feet of local government officials.

The chart below accounts for the recent Albuquerque City Council decision to raise the tax to 7.875% from where it is now at 7.5%. “Way back” in 2012, Albuquerque’s GRT was quite a bit lower than Rio Rancho’s, but due to a combination of City and Bernalillo County tax hikes starting in 2015, Albuquerque now has a higher GRT than does Rio Rancho and the rate is going up faster than it has at any time since the statewide Richardson-era decision to raise the GRT by half a cent in order to eliminate the tax on groceries that took effect in the mid-2000s.

It is also worth noting that Rio Rancho has a much lower property tax burden than does Albuquerque.


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3 Replies to “The trend is NOT Albuquerque’s friend when it comes to the Gross Receipts Tax”

  1. Are there any statistics on business moves from Albuquerque to Rio Rancho?

    Rio Rancho may be on track to eventually replace Albuquerque as the state’s economic capitol. They already have better schools and less crime, and a right-to-work law and lower taxes will make Rio Rancho increasingly attractive to business. Albuquerque’s tax hikes, minimum-wage ordinance and the probability of a sick leave ordinance will accelerate this trend.

  2. Rio Rancho just increased their property tax with a public safety bond. There has been mention of increasing the grt to cover shortfalls in the budget and reductions from the hold harmless reimbursements. Chance are they will be falling suit. Also Sandoval County has also mentioned grt increase for the county jail.

  3. Yep, Republican majority Sandoval County Commission approved 1/8% sales tax increase without voter approval. Gotta love them conservative Republicans. NOT

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