Voters already had a ballot packed with consequences this November.
Now, they have one more. During a meeting on July 15, the Las Cruces City Council voted unanimously to put a proposed gross receipts tax hike before voters this fall.
City officials proposed a ballot measure because they say the additional money will be spent to support a slew of public safety and quality-of-life projects. Opponents say Las Cruces businesses and residents remain hampered by the economic downturn following the pandemic and that this will only worsen their situation.
“This is not an easy conversation, and I think that all of us are looking to the voters to consider this,” City Councilor Becky Corran said.
The ballot measure is part of a two-part plan to provide the city with an estimated $20 million in recurring revenue. Combined with its 2024-25 budget changes, the city says this effort will lead to better-trained police officers, lower crime rates, more recreational opportunities and support the city’s redevelopment effort. The increase in revenue would also cover the increase in costs the city has sustained post-pandemic.
The specific use of the money is up to the city — something that some commenters lamented. Dolores Lucero, a former city councilor, told the council they should have split up the vote to better inform the public what they wanted to do with the money.
“This is very vague,” Lucero said, referring to the question that voters will read.
The language, written by city staff, reads:
“Shall the City of Las Cruces impose a municipal gross receipts tax in the amount of three hundred twenty-thousands of one percent (0.3250%), the revenues of which shall be used for funding capital improvements and maintenance for public safety, streets, parks, and other public facilities and critical infrastructure?”
Others, including Councilor Bill Mattiace, said the money should be exclusively for police efforts. Mattiace also suggested that the package include a sunset period – meaning the tax would revert to the old rate after a specific date.
“It’s confusing to me, and it’s confusing to some of my colleagues on how it’s worded. I just wish that it was more simply done,” Mattiace said.
Part of the confusion expressed by the council and some in the public comes from the fact that voters can only approve about half of the proposed increase.
State law allows the city to raise GRT without an election, but only by about $9 million. Voters can approve another $11 million via an election. If the voters pass the $11 million increase, the council has signaled it would pass the $9 million increase—although that remains an unknowable outcome until after November.
Some members of the public, including representatives from the area’s film industry, spoke in favor of the tax hike.
Jonathon Sepp, public affairs official for a local film studio, said he supported the increase because he believes it will improve the city.
“This GRT increase will negatively affect me, selfishly, as a resident and business operator,” Sepp said. “But I think it’s a small sacrifice for a healthier and safer community.”
However, perhaps no one favored the increase more than Mayor Eric Enriquez, who gave a brief speech on his view of the package.
“It all comes down to trust, safety, and being better,” he said. “We all want a better Las Cruces.”
Next, the question will be submitted to the Doña Ana County Clerk’s office, which will review it to ensure it doesn’t violate the law.
Then, voters will decide.
