City Council “Odd Couple” Of Progressive Democrat Joaquín Baca and Conservative Republican Brook Bassan Sponsor Gross Receipts Tax Increase; No Major Need For GRT Tax Increase; Tell City Council To Vote No! |

NEWS UPDATE

On March 16, the Albuquerque City Council voted down the proposal to raise gross receipts taxes by 0.4875% going from 7.62% to 8.1%. The tax was voted down by a 1-8 vote with the tax sponsors Councilors Brook Bassan and Joaquín Baca voting NO and saying amendments “killed the spirit” of the bill. Mid heights Progressive Democrat Councilor Tammy Fiebelkorn was the only councilor to vote for YES . The tax would have raised $113 million a year to invest in infrastructure projects, reduce city-imposed fees and give raises to the lowest-paid city employees. Click on the below link for full story:

https://www.krqe.com/news/politics-government/albuquerque-city-council-votes-down-proposed-gross-receipts-tax-increase/

City Council “Odd Couple” Of Progressive Democrat Joaquín Baca and Conservative Republican Brook Bassan Sponsor Gross Receipts Tax Increase; No Major Need For GRT Tax Increase; Tell City Council To Vote No!

Progressive Democrat City Councilor Joaquín Baca and Conservative Republican Brook Bassan are co-sponsoring City Ordinance (O-26-16), known as the Community Enhancement Municipal Gross Receipts Tax, to raise the Gross Receipts Tax (GRT) in the city. The GRT rate currently stands at 7.625. The city imposes and taxpayers must pay a gross receipts tax on every single purchase of goods and services purchased, except for food. If approved by the 9 member City Council, the GRT would jump from 7.625% to 8.113% and place Albuquerque among the top-tier of cities by total tax rate and above nearby Santa Fe (8.1875%) and Rio Rancho (7.4375%).

The ordinance is currently scheduled be heard at the March 16 council meeting.

According to the ordinance, the revenue would pay for buildings, infrastructure and equipment, cover debt payments and fund the day-to-day work of city facilities. It would also help address employee pay gaps identified in a city compensation study and pay for raises for city staff and give the city flexibility to reduce fees for pools, golf courses and recreation programs.

The tax increase could raise an estimated $119 million for all the purposes listed by the sponsors. According to a tax analysis contained in the City’s Fiscal Year 2026 budget, “the City has imposed 1.4375% of the total 2.05% [local tax] cap not requiring voter approval, leaving 0.6125% of remaining municipal gross receipts tax capacity that does not require voter approval. The remaining municipal GRT increment not requiring a referendum would generate approximately $149.55 million.”

Paul Gessing, of the Rio Grande Foundation, a conservative advocacy organization which historically opposes all tax increases, said this:

“This is a very significant increase. It’s the biggest attempted increase I’ve seen in a very long time, if ever, at the local government level. … 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 $926,388,000 [in its general fund budget]. That number jumped to $1.5 billion by 2026. Yet, once again, there are plans afoot for another tax increase at City Hall.”

RATIONAL FOR TAX INCREASE NOW

The Community Enhancement Municipal Gross Receipts Tax ordinance is modeled after the Quality‑of‑Life Enhancement Fund City Councilor Baca sponsored last year that was rejected by the City Council on an 1 yes to 8 no vote. The Quality‑of‑Life Enhancement Fund ordinance would have created a ballot measure asking voters if they wanted to raise gross receipts taxes by 0.375%, which would have generated an estimated $80 million to $86 million for the city of Albuquerque. The new Community Enhancement Municipal Gross Receipts Tax adds funding for city operations and the potential to lower certain municipal fees, including at golf courses and museums.

City Councilor Baca said a recent state law change created a deadline for introducing this type of GRT tax increase. Baca said if the tax increase is not introduced by the end of March the city would have to wait another full year to act, delaying funding for projects and operations by two years. The city will still use bonds for some projects, but the ordinance is needed to meet the legal deadline.

Baca said this:

“The current bill is almost like a placeholder, to be honest. … We’re going to flesh it out over the next couple of weeks, to really add something to it.”

SPONSORS ATTEMPT TO JUSTIFY TAX

Progressive Democrat Joaquín Baca said this about the tax increase:

“This is an opportunity to invest in ourselves, bring Albuquerque up on par with all the surrounding cities. And part of that is because if you want to attract health care professionals, if you want to attract industry, all that is always in competition with other cities.”

The tax money generated would also help pay for city staff. Baca said this:

“If you work for the city, you typically make less than someone outside of the city, typically, with the same type of job. So, this is bringing our folks within the city up on par with their colleagues.”

Republican City Councilor Brook Bassan said this about the tax increase:

“We’re proposing to raise a tax very small, and that equals less than half a penny for every dollar spent. … I know that the reason that I am really seeking to increase this [tax] and get funds is because I’ve been working for six years to build the North Domingo Baca Aquatic Center.”

Councilors Bassan and Baca said they don’t expect the higher sales tax to hurt resident much financially. Bassan said this:

“It’s such a small amount of money that I don’t even think most people will notice the increase in taxes, but they definitely are going to notice the improvement in the city of Albuquerque.”

COMMENTARY AND ANALYSIS

City Councilors Progressive Democrat Joaquín Baca and Conservative Republican Brook Bassan have officially become the City Council “odd couple” with their co-sponsorship of a tax increase. Politically, they both represent very opposite philosophies.

It was very naïve for City Councilor Brook Bassan to say “We’re proposing to raise a tax very small, and that equals less than half a penny for every dollar spent.” The tax is in no way small when it is tact on an already high gross receipts tax resulting in and 8.113% total tax and placing Albuquerque among the top-tier of cities by total tax rate and above nearby Santa Fe (8.1875%) and Rio Rancho (7.4375%).

Councilor Baca is equally naïve as Bassan if he thinks increasing the gross receipts tax will not affect the city ability to attract new industry and it will have a direct impact on the construction and manufacturing industries.

On the national level, affordability has become a major issue as prices soar in all categories and the issue could literally affect the mid terms. Gas prices are already soaring because of Trump’s Iran war as the cost of a barrel of oil has gone from $60 to over $100 in a matter of two weeks and still climbing.

“Effects of the Iran war are rippling into the spending habits of American consumers, who are seeing price surges for gasoline and other items. Energy prices have increased since the near-total shutdown in early March of the Strait of Hormuz, a crucial waterway that carries 20% of the world’s oil shipments and about 20% of the world’s seaborne liquified natural gas. Most of the oil is from Saudi Arabia and Iraq. Oil prices began rising March 3. In the United States, average gasoline prices hit $3.59 a gallon on March 11.”

https://www.usatoday.com/story/graphics/2026/03/11/iran-war-gas-oil-prices-impact/89098700007/

The gross receipts tax is the single most regressive tax there is disproportionately impacting low and moderate income residents and spiking prices on all goods and services, except for food purchases where the gross receipts tax in not imposed.

Gross receipts tax revenues are the biggest source of revenue for the city to pay for essential services, such as police and fire protection, and any increase needs to be justified in no uncertain terms. As it stands, the city is not facing a critical deficit and still has more than ample bonding capacity to ask the voters to fund major city infrastructure projects.

The proposed tax increase needs to be rejected in no uncertain terms by the city council.

CONTACT YOUR CITY COUNCILLOR

Please contact your city councilor and urge them vote NO on City Ordinance (O-26-16), known as the Community Enhancement Municipal Gross Receipts Tax. The emails to contact all 9 City Councilors followed by their Policy Analyst to voice your opinions are: