Las Cruces survey finds support for a potential tax increase, city officials say
Las Cruces voters could decide a ballot question in November that would raise gross receipt tax rates.
During a work session on Monday, the City Council directed staff to develop a resolution they can present to the panel later this summer. It the council approves it on the ballot, voters would be asked whether to pass a tax increase.
"I have no problem with exploring other options, but I think this is something we have to move in this direction," Mayor Eric Enriquez said.
During the work session, deputy economic development director Chris Faivre presented results of a community opinion poll on a potential increase to the city's gross receipt tax rate. According to Faivre, those surveyed supported an increase to fund capital improvements and maintenance of public safety initiatives, housing, roads and traffic and park and public facility improvements.
More: City proposes $589.5 million budget for 2025
How much money could a tax increase raise in Las Cruces?
Faivre said the city could generate about $9 million per year through an ordinance that would raise the tax by 0.2375% and another $11 million per year through the referendum by raising the tax by 0.3250% ― if approved by voters in November.
If the council adopts both recommendations, it would equate to an increase of about 56 cents per $100 spent on goods and services.
The council indicated that sending the issue out to voters in November should occur first. If passed, it's likely an ordinance could be passed following the election.
Faivre said the city would continue with a community outreach campaign from June until the election. City leaders would consider a resolution to approve the ballot measure in July with the city delivering the ballot question to the county by August.
"If it's not voted on by the voters, then we could go to an ordinance, but I think that people will want to vote on that and not leave it entirely to City Council," said Councilor Yvonne Flores.
The city's current GRT rate is 8.0625%. It sits behind municipalities such as Taos (9%), Santa Fe/Ruidoso/Farmington (8.1875%), Sunland Park (8.175%nd Anthony (8.1250%). Albuquerque is lower at 7.6215%.
There was also discussion of some combination of a GRT increase and a property tax increase.
Faivre said the city could generate $6 million through ordinance if it utilized its unused tax authority of 2.874 %. It would result in an increase of $100 per year for home owners for a $300,000 home with an assessed value of $100,000.
The downside of a property tax increase would be the amenities or services are only available to residents who pay property taxes to the city.
"I would love for us to look at that option," Mayor Pro Temp Johana Bencomo said.
"The reality is that we are behind on offering quality services to our community when it comes to parks, when it comes to libraries, when it comes to these quality of life services that we just don't have enough money for and GO Bonds just aren't meeting that need every four years," Bencomo said.
What the survey said
When he was hired to replace Ifo Pili, City Manager Ikani Taumoepeau said Las Cruces needed to find new revenue streams to fund public safety, street and park improvements and public facility projects.
Faivre said 88% of voters surveyed saw public safety as a priority and the reason they were most willing to support an increase.
The survey was conducted from May 1-5 with 401 interviews of registered voters in Las Cruces.
Faivre said from the beginning to the end of the survey period, voter support of the rate hike increased from 51% to 63% of people who said they "definitely/probably" would vote for the increase.
"As we got into our messaging specifically on what our intentions were, support for those various areas did increase," Faivre said.
Jason Groves can be reached at 575-541-5459 or jgroves@lcsun-news.com. Follow him on X, @jpgroves.
This article originally appeared on Las Cruces Sun-News: Las Cruces eyes tax increase on ballot after voter survey results
