COUNTY News:
The Los Alamos County Council will hold a public hearing at 6 p.m., Tuesday, Oct. 28, in Council Chambers at 1000 Central Ave., to consider adopting two ordinances that would increase the County’s gross receipts tax (GRT) rate by five-eighths of one percent (0.625%).
Proposed Ordinance 748 would increase the County portion by 0.0125% and Ordinance 747 increases the municipal portion by 0.6125%.
If approved, the total GRT rate would increase from 7.0625% to 7.6875%, effective July 1, 2026. At that rate, GRT would total eight cents on a $1 purchase, 77 cents on a $10 purchase, and $7.69 on a $100 purchase. The difference from the current rate is approximately one cent on a $1 purchase, six cents on a $10 purchase, and 63 cents on a $100 purchase.
Example household impact
Another way to illustrate the impact is to look at an example household. According to the U.S. Census Bureau, the median household income in Los Alamos County is about $143,000. Based on national consumer expenditure data, households typically spend around 20% of their income on taxable goods and services such as retail purchases, dining, and personal services.
In New Mexico, grocery items and prescription drugs are not taxable. Using that benchmark, a Los Alamos household earning $143,000 would spend roughly $28,600 per year on taxable items.
The proposed increase would add about $15 per month, raising a median household’s GRT payment from $168 to $183 per month or from about $2,020 to $2,199 per year.
Reason for the proposal
During its Sept. 30 meeting, the Council directed the County to return with two ordinances in response to a sharper-than-expected decline in GRT revenues, approximately $13 million below the adopted Fiscal Year 2025 budget. Current projections indicate GRT revenues will remain between $13 million and $15 million under budget through the current fiscal year.
The proposed GRT increase is intended to help stabilize long-term revenues and maintain essential County services such as public safety, roads, parks, libraries, and community and social service programs, along with capital projects such as the Community Broadband Network initiative.
To help explain the proposal, Administrative Services Director Helen Perraglio recorded a short video overview available online. In the video, Perraglio outlines why the adjustment is being considered, and how the proposed change would affect purchases.
Background on GRT
GRT is the County’s largest source of income, funding public safety, infrastructure maintenance, and community programs. About 72% of the County’s overall budget comes from GRT, while property taxes account for about 8%. Adjusting the GRT rate allows costs to be shared among residents, visitors, and businesses, rather than relying solely on local property owners.
Even with the proposed increase (to 7.6875%), Los Alamos County’s GRT rate would remain lower than several neighboring communities. The rate in Taos is 9.1750%, in Santa Fe 8.1875%, and in Española 8.6875%.
How to participate
Residents are encouraged to attend the hearing and provide public comments in person or via Zoom. Written comments can also be submitted online through the eComment tool once the October 28 Council agenda is published, anticipated around 5 p.m., Friday, Oct. 24, through noon on the day of the meeting.
If adopted, the ordinances would allow the County to notify the New Mexico Department of Finance and Administration in time for the new rate to take effect at the start of the next fiscal year.