{"MatterId":14743,"MatterGuid":"85188ECB-EA76-43DF-9560-BB6CE5EB3B68","MatterLastModifiedUtc":"2026-08-03T18:13:59.57","MatterRowVersion":"AAAAAADPhi8=","MatterFile":"O-26-16","MatterName":null,"MatterTitle":"Imposing A Municipal Gross Receipts Tax And Providing For The Use Of Revenues For Municipal Capital Projects, Including Related Debt Service, And Municipal Operations (Baca and Bassan)","MatterTypeId":1,"MatterTypeName":"Ordinance","MatterStatusId":7,"MatterStatusName":"Failed","MatterBodyId":1,"MatterBodyName":"City Council","MatterIntroDate":"2026-03-02T00:00:00","MatterAgendaDate":"2026-03-16T00:00:00","MatterPassedDate":"2026-03-16T00:00:00","MatterEnactmentDate":null,"MatterEnactmentNumber":null,"MatterRequester":null,"MatterNotes":null,"MatterVersion":"1","MatterCost":null,"MatterText1":null,"MatterText2":null,"MatterText3":null,"MatterText4":null,"MatterText5":null,"MatterDate1":null,"MatterDate2":null,"MatterEXText1":"CC 3/16/26 (lr) (mmm)\r\n[see full write-up in the 3/16/26 memo]\r\n\r\nBrief Summary: This bill proposes to impose a new municipal gross receipts tax (GRT) within the City of Albuquerque. Approval of this bill would establish a 0.4875% Municipal Local Option Gross Receipts Tax, titled the “Community Enhancement Municipal Gross Receipts Tax.” The ordinance would be compiled as a new Part 11 within Chapter 4, Article 3 of the Revised Ordinances of Albuquerque.\r\n\r\nThe ordinance states that the proposed tax is intended to provide a stable revenue source for municipal capital projects, associated debt service, and general municipal operational purposes. Whereas clauses reference the City’s need to support capital improvements, operational costs for City facilities, and workforce compensation issues identified in the most recent Classification and Compensation Study. The legislation also references the impact of municipal user fees on public access to amenities and services. \r\n\r\nThe tax would be imposed pursuant to the Municipal Local Option Gross Receipts Taxes Act and would apply to businesses operating within the City based on their taxable gross receipts reported under the New Mexico Gross Receipts and Compensating Tax Act.\r\n\r\nAnalysis: The bill establishes a new municipal gross receipts tax equal to 0.4875% of taxable gross receipts reported under state law. The tax would apply to persons engaging in business within the municipality and is imposed as an excise tax for the privilege of conducting business within Albuquerque. \r\n\r\nThe ordinance adopts by reference the definitions, deductions, and exemptions contained in the New Mexico Gross Receipts and Compensating Tax Act, meaning administration of the tax would follow existing state GRT rules and enforcement mechanisms. \r\n\r\nThe bill establishes several specific exemptions from the municipal tax, including:\r\n• Gross receipts from transportation services that originate within the municipality and terminate outside the municipality.\r\n• Gross receipts of businesses located outside municipal boundaries on municipally owned land when state GRT distributions apply.\r\n• Direct broadcast satellite services. \r\n\r\nRevenue generated from the proposed tax would be dedicated for:\r\n• Municipal capital projects.\r\n• Bond debt service associated with those capital projects.\r\n• General municipal operational purposes.\r\n\r\nFiscal Impact: If passed, this ordinance would increase the City’s GRT by 0.4875% and is estimated to generate $113M dollars annually in additional revenue. A portion will be dedicated to capital projects and the rest for government operations.\r\n      *Provided by RBC Capital Markets\r\n\r\nKey Dates: The tax would take effect on July 1, 2026.\r\n\r\nUnder NMSA 1978 § 7-19D-3, an ordinance imposing or changing a municipal local option GRT must take effect on January 1 or July 1, whichever occurs first after at least three months have passed from the date the adopted ordinance is delivered to the New Mexico Taxation and Revenue Department.\r\n\r\nAdditionally, state guidance explains that municipalities must notify the Taxation and Revenue Department at least three months before the effective date of the tax rate change.\r\n\r\nThis ordinance would be required to be delivered to the New Mexico Taxation and Revenue Department by March 31 to take effect July 1, 2026.\r\n\r\nThe City Clerk is required to deliver a certified copy of the ordinance to the New Mexico Taxation and Revenue Department within five days of enactment.\r\n\r\nComments: The ordinance relies on the authority provided under the Municipal Local Option Gross Receipts Taxes Act, specifically NMSA 1978 § 7-19D-3, which allows municipalities to impose certain local option gross receipts taxes on persons engaging in business within the municipality. \r\n\r\nLocal option gross receipts taxes are subject to authorization limits established in state law. Municipalities may impose specific increments of local option GRT authorized under statute. The ordinance proposes a 0.4875% increment, which corresponds to one of the increments authorized under the Municipal Local Option Gross Receipts Taxes Act. The ordinance includes provisions allowing the tax to take effect following adoption by the Council.\r\n\r\nAs of 2026, the combined gross receipts tax rate within most of the City of Albuquerque is approximately 7.625%, which includes the State GRT rate and local option increments imposed by the City and other taxing jurisdictions. If the proposed 0.4875% municipal tax is implemented, the combined rate in Albuquerque would increase to approximately 8.113%, subject to applicable location codes and special tax districts.","MatterEXText2":"Laura Rummler/Mark Motsko","MatterEXText3":null,"MatterEXText4":null,"MatterEXText5":null,"MatterEXText6":null,"MatterEXText7":null,"MatterEXText8":null,"MatterEXText9":null,"MatterEXText10":null,"MatterEXText11":null,"MatterEXDate1":null,"MatterEXDate2":null,"MatterEXDate3":null,"MatterEXDate4":null,"MatterEXDate5":null,"MatterEXDate6":null,"MatterEXDate7":null,"MatterEXDate8":null,"MatterEXDate9":null,"MatterEXDate10":null,"MatterAgiloftId":0,"MatterReference":"27","MatterRestrictViewViaWeb":false,"MatterReports":[]}