ABQ GOP City Councilor Dan Lewis tells us the move to increase the city's gross receipts tax by nearly half a percent will not win approval, if it comes to a vote at tonight's Council meeting. Still, the mere idea of raising taxes in a city with no looming fiscal crisis has both business interests and progressives on high alert and united in opposition. 

The gross receipts tax would soar to over 8 percent if the tax is approved, settling at 8.113 percent. The tax is already known as a business killer as it adds that amount to most retail purchases--like restaurants--as well as bills sent out by professionals such as architects, attorneys and CPA's. 

The tax is especially tough on lower income households who spend most of their money on every day goods and live paycheck to paycheck. Former US attorney and '25 progressive mayoral candidate Alex Uballez explains:

A regressive tax means that it disproportionately impacts low-and-moderate-income ABQ residents through higher prices on goods and services. While it can be used to generate local revenue (good thing!), these kinds of increases can place a higher relative burden on lower-income households.  

The oddest part of the plan is that it comes from a Republican--NE Heights City Councilor Brook Bassan--who barely survived her 2023 re-election bid when she fudged her education credentials. Is this her off-key swan song? 

The hike is co-sponsored by Dem Councilor Joaquin Baca who is pushing an unpopular downtown performing arts center. 

BROOK'S OBSESSION 

Bassan has been obsessed with completing the the aquatic center at North Domingo Baca Park that has become a money pit. It appears part of the tax increase would go to finish the boondoggle that Bassan has been unable to move to completion. 

Councilor Bassan

By mid-2023 the city had raised roughly $$40$ million for the center. Inflation pushed the project cost from around $$32$ million to about $$50$ million. One 2026 estimate now has the projected cost near $$70$ million. Is that what we'll see with other projects the Councilor has in mind for her tax increase? 

The odd couple of Bassan and Baca say that the $113 million the tax would generate annually would be devoted to a variety of capital outlay projects and maintenance of parks and the like. 

The Councilors say the tax could even lead to free admission to golf courses, the BioPark and museums. However, skeptics point out that only a small fraction of the populace uses those facilities, yet everyone would be forced to shoulder the new tax to run them.

INEFFECTIVE LEADERSHIP?

Councilor Baca

The Councilors point out that Albuquerque is behind on capital projects, but opponents say forcing a tax hike is a sign of ineffective leadership. Instead of looking to Santa Fe—which is currently awash in billions of dollars in surplus—the Council and Mayor have failed to secure the necessary funding or increase the city’s bonding capacity. Now, they want to use half of this new tax increase to back $360 million in bonds for projects that remain largely unnamed.

Worse yet, this proposal arrives amidst global instability. With the Middle East crisis increasing the probability of a recession, gas prices climbing, and inflation stinging, is this the time to add a tax burden? Albuquerque has endured a stagnant economy for years; raising the GRT to an extreme level may well add to the city's woes rather than alleviate them.

The Council meeting today starts at 5 p.m. and will be aired on YouTube. 

ON THE AIR 

It seems everyone in La Politica ends up on the Richard Eeds Santa Fe talk show on KTRC--including yours truly. 

In our latest appearance we bantered with the longtime host about the key issues currently on the table--the Guv's race, oil prices, Santa Fe's never-ending obelisk argument and more. Listen here. 

This the Home of New Mexico Politics.  

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