Council to consider tax increase
By Eric Maddy
The SCORE
Voters may get to decide next year if they want to increase city gross receipts taxes by a quarter-cent to help fund a University of New Mexico presence in Rio Rancho.
Ordinance 95 and Resolution 107, which would place the proposal on the March 4 city election ballot, on the agenda for Wednesday night’s Governing Body meeting. By procedure, an ordinance requires a second reading and a 10-day waiting period before it becomes law.
The tax increase is just one of several items likely to pack the council chambers for the 6 p.m. meeting. Also on the agenda is Ordinance 91 that would place restrictions on commercial vehicles, especially long-haul trucks, from parking in residential neighborhoods; first action on Special Assessment District 7; and the 10-year extension of Cable One’s contract.
The proposed increase would raise Rio Rancho's gross receipts tax rate to 6.9375 percent, making it higher than Albuquerque for the first time. If approved by voters, the new rate would take effect July 1.
Rio Rancho is the only city that currently qualifies under the Municipal Higher Educatin Gross Receipts Act, which passed the Legislature last year as House Bill 374 as sponsored by Tom Swisstack of Rio Rancho. It only allows cities in a Class B county with population of more than 50,000 and greater than $2 billion in taxable property to qualify.
Roswell is only lacking the population component to become eligible.
According to a fiscal impact report prepared by the Legislative Finance Committee, in fidscal year 2008 "Rio Rancho's taxable gross receipts base is expected to total $1.8 billion. Imposing an additional 1/4 percent tax would increase that municipality's revenue by about $4,338,700 (per year)."
The proposed increase would raise Rio Rancho's gross receipts tax rate to 6.9375 percent, making it higher than Albuquerque for the first time. If approved by voters, the new rate would take effect July 1.Rio Rancho is the only city that currently qualifies under the Municipal Higher Educatin Gross Receipts Act, which passed the Legislature last year as House Bill 374 as sponsored by Tom Swisstack of Rio Rancho. It only allows cities in a Class B county with population of more than 50,000 and greater than $2 billion in taxable property to qualify.Roswell is only lacking the population component to become eligible.According to a fiscal impact report prepared by the Legislative Finance Committee, in fidscal year 2008 "Rio Rancho's taxable gross receipts base is expected to total $1.8 billion. Imposing an additional 1/4 percent tax would increase that municipality's revenue by about $4,338,700 (per year)." 