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Tax increase defeated
The Albuquerque City Council voted down a proposal Monday to raise gross receipts taxes by a fraction of a percent.
The ordinance would have raised $113 million a year to invest in infrastructure projects, reduce city-imposed fees and give raises to underpaid city employees.
The proposal would have raised GRT from 7.62% to 8.1%, a difference of .4875%.
The ordinance was voted down by a 1-8 vote.
Councilors Brook Bassan and Joaquín Baca spearheaded the proposal, though they would later vote against it after amendments "killed the spirit" of the bill.
“I'm not proud to sponsor a tax increase,” Bassan said. “In fact, it's the last thing I ever thought I would do. But after careful thought, I truly believe this will allow us to close some of the massive gaps our city is facing. It will allow us to move forward and become a better version of what we already have.”
Bassan told the crowd that raising taxes was a decision of last resort, after trying and failing to cut what she called a “bloated budget” for two years as Committee of the Whole Chair.
Sponsor Baca said that raising taxes is “investing in ourselves.”
After the bill was amended to reduce the tax increase, both Bassan and Baca ultimately voted against their own bill. Tammy Fiebelkorn, the sponsor of those amendments, was the only councilor to vote for the bill.
Those amendments meant that the tax hike would yield around $30 million a year, down from $113 million. It also guaranteed that the majority of those funds were spent on raises for staff.
Amendment sponsor Councilor Fiebelkorn said that the original tax hike would impact the poorest residents all the while funding councilors’ “vanity projects.”
Councilors Stephanie Telles and Dan Lewis, who rarely agree, both said that the city budget was improperly managed and that a tax increase was a rush fix.
After amendments sealed her ordinance’s fate, Bassan apologized to city employees in the audience.
“I had a proposal that's written for everyone to see that would have gotten you $56 million a year in compensation,” Bassan said.
Council adjourns for dinner break
The city council has adjourned for a thirty-minute dinner break. The meeting will resume at approximately 8:05 p.m.
How does Albuquerque’s tax rate compare to other cities?
Albuquerque has a lower gross receipt tax than many cities and communities in the state.
Of the five most populated cities and towns in New Mexico, Albuquerque has the second lowest rate at 7.62%, according to the Tax and Revenue Department. Neighboring Rio Rancho has a lower tax rate by .18%
If raised, Albuquerque’s GRT would still be lower than Santa Fe, Las Cruces, Roswell and Farmington.
Raising taxes?
In this world, nothing is certain except death and taxes.
The Albuquerque City Council considers tonight whether to raise gross receipts taxes by a fraction of a percent, potentially raising $113 million a year to invest in infrastructure projects, reduce city-imposed fees and give raises to underpaid city employees.
The proposal would raise GRT from 7.62% to 8.1%, a difference of .4875%.
The ordinance is spearheaded by Councilors Joaquín Baca and Brook Bassan.
Meanwhile, community members have flocked to the council meeting to speak either for or against the measure, with more than 30 people signed up for public comment.
A packed house
The council chambers are packed with attendees with nearly every seat in the house full.
Even more attendees are standing outside of the chambers watching the meeting on television in the lobby.
A bulk of the attendees are present for the proposed gross receipts tax changes and immigration ordinance, with nearly 70 people signed up to speak.
With a long list of public sign-up list and controversial legislation, expect the meeting to stretch into the late hours of the night.
What's on the agenda?
The Albuquerque City Council convened at 5 p.m. for its fifth meeting of the year.
Tonight, the council will discuss raising the gross receipts tax by a fraction of a percent as well as legislation to restrict Immigration and Customs Enforcement within the city.
The complete meeting agenda is posted online and can be accessed here.