{"MatterId":14925,"MatterGuid":"24A6107A-3E20-455E-9247-5F3094D7AEC4","MatterLastModifiedUtc":"2026-06-16T20:49:57.31","MatterRowVersion":"AAAAAADNV2E=","MatterFile":"O-26-42","MatterName":null,"MatterTitle":"Imposing A Municipal Gross Receipts Tax And Providing For The Use Of Revenues For Municipal Operations And Maintenance And Cost-Of-Living, And For Municipal Community Enhancement Projects, Including Related Debt Service (Bassan, Peña)","MatterTypeId":1,"MatterTypeName":"Ordinance","MatterStatusId":9,"MatterStatusName":"Withdrawn","MatterBodyId":1,"MatterBodyName":"City Council","MatterIntroDate":"2026-06-01T00:00:00","MatterAgendaDate":"2026-06-15T00:00:00","MatterPassedDate":"2026-06-15T00:00:00","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 6/15/26 jc\r\nFull write up in 6/15/26 Council Memo\r\n\r\nBrief Summary: If approved by the voters, this bill proposes to codify a new municipal gross receipts tax (GRT) within the City of Albuquerque. The corresponding ballot resolution, R-26-43, proposes to submit a question to the voters to establish a 0.4875% Municipal Local Option Gross Receipts Tax, titled the “Community Enhancement and Local Investment Tax.” \r\n\r\nThe ordinance states that the proposed GRT is intended to provide a stable revenue source for larger-scale generational municipal capital projects and their necessary operational and maintenance costs and general municipal operational and maintenance purposes and cost-of-living for the City’s workforce. \r\n\r\nDedication: The ordinance provides that the Community Enhancement and Local Investment Tax would be subject to a 21-year sunset and would be dedicated as follows:\r\n\r\nA.\t50% - General municipal operational and maintenance purposes and cost-of living for City employees\r\n\r\nB.\t50% - Municipal community enhancement projects and related debt service, as applicable\r\n\r\n1.\tEquitable Division of Funds. The amount dedicated to municipal community enhancement projects would be divided equitably by ten (10). A portion would go to projects in each of the nine City Council districts, and a portion would go to city-wide community enhancement projects.\r\n2.\tIdentification of Priority Projects. Projects that can begin within six (6) months of the issuance of bonds to finance such projects secured by this tax revenue must be identified and defined prior to the issuance of the bonds, and a list of the projects must be included in the bond ordinance approving the issuance of the bonds. \r\n3.\tReversion of Funds Not Bonded Against. Any tax funds collected under this section that are not bonded against by July 1, 2028 will revert to the General Fund for general municipal operational and maintenance purposes and cost-of-living for City employees. \r\n\r\nAnalysis: This bill codifies a proposed new municipal GRT equal to 0.4875% of taxable gross receipts reported under state law. The ordinance would codify the new GRT as a new Part 11 within Chapter 4, Article 3 of the Revised Ordinances of Albuquerque. The tax would be imposed pursuant to the Municipal Local Option Gross Receipts Taxes Act and 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 provides that the Community Enhancement and Local Investment Tax shall sunset 21 years after the effective date of this ordinance, unless by resolution the City Council elects to continue the tax. \r\n\r\nThe 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. Local option gross receipts taxes are subject to authorization limits and procedural requirements established in state law. \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. Consistent with state law requirements, the bill also establishes several specific exemptions from the municipal tax, including gross receipts from transportation services that originate within the municipality and terminate outside the municipality; gross receipts of businesses located outside municipal boundaries on municipally owned land when state GRT distributions apply; and direct broadcast satellite services. \r\n\r\nFiscal Impact: If approved by the voters, the City’s GRT rate would increase by 0.4875% and is estimated to generate $113M dollars annually in additional revenue. \r\n\r\nGRT Increment\t% For Debt Service\tGRT Revenue Generated\tRevenue Dedicated to Debt\tRevenue Dedicated to Ops, Maint, COL\tFinal Maturity\r\n\t\t\t\t\t10 Years\t15 Years\t20 Years\r\n0.4875%\t50%\t113,065,780\t56,532,890\t56,532,890\t230,000,000\t310,000,000\t360,000,000\r\n\r\nThe City is authorized to impose a maximum municipal GRT of 2.50%. The current City rate imposed is 1.5625%, with 0.9375% in remaining capacity. If this proposed 0.4875% Community Enhancement and Local Investment Tax is approved, the City rate will be 2.05%, leaving 0.45% municipal GRT capacity.\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.\r\n\r\nKey Dates: The effective date of the Community Enhancement and Local Investment Tax shall be July 1, 2027, so long as that date is at least three months from the date when the results of the election are certified to be in favor of imposing the tax and this ordinance is adopted and delivered to the New Mexico Taxation and Revenue Department.","MatterEXText2":"Mark Motsko/Julia Coulloudon","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":[]}