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For the second time in four months, a proposal to raise Gross Receipt Taxes failed to survive the sa国际传媒官网网页入口 City Council.

A 0.4875% increase, the 鈥淐ommunity Enhancement and Local Investment Tax,鈥� would have split $113 million in annual revenue between community projects 鈥� divided equally among councilors鈥� districts 鈥� and city operations and cost-of-living increases.

Councilors voted down the proposal 5-4, which would have left the final decision up to voters come November. But that all was moot after councilors Dan Champine, Tammy Fiebelkorn, Ren茅e Grout, Dan Lewis and Stephanie Telles voted against the proposal. 

Councilors Brook Bassan, Klarissa Pe帽a, Nichole Rogers and Joaqu铆n Baca voted for the proposal.

Sponsored by Bassan and Pe帽a, the ordinance would have raised Gross Receipts Taxes from 7.62% to 8.1%. A similar bill failed to pass council in March, with Baca and Bassan sponsoring, and subsequently voting against, that previous bill.

Gross Receipts Taxes are paid by businesses and are passed down to customers. GRT constitutes a sizable percentage of the city鈥檚 operating budget and general fund. In 2025, 40% of the city's revenues were derived from GRT.

Of the five most-populated cities and towns in New Mexico, sa国际传媒官网网页入口 has the second-lowest rate at 7.62%. Neighboring Rio Rancho has a lower tax rate by 0.18%. On the whole, New Mexico is among the minority of states that have GRT.

In the proposal, 50% of tax revenues would have gone toward 鈥済eneral municipal operational and maintenance purposes and cost-of-living.鈥� The other half would fund municipal community enhancement projects and be divided by 10, one for each councilor鈥檚 district and a portion for Mayor Tim Keller.

During Monday鈥檚 meeting, the majority of public comment was against the proposal, with concerns about prices raising for consumers amid already high inflation most affecting those on a fixed income or low-income.

鈥淚t鈥檚 already been defeated once, we don鈥檛 want it on the ballet,鈥� resident Dennis Curtis said. He added the city should 鈥渂udget responsibly and lower taxes so we can make sa国际传媒官网网页入口 more prosperous.鈥�

Several who spoke out against the proposal focused on the North Domingo Baca Park Aquatics Center as one project that would be funded by the tax but has seen its price tag balloon since it was proposed and approved. 

Bassan, who spearheaded the project currently under construction, beat back against the critics. She said the proposal split 50% of the revenues from the GRT increase 10 ways, 鈥渘ot just for one district or one project.鈥�

Bassan further said that the aquatics center was not 鈥渁 mismanaged project鈥� and that its skyrocketing costs, from proposal to implementation, came largely from inflation. 

Lewis said he would vote no on the tax hike, then explained why.

鈥淚 have constituents that have elected me four times and they know how strongly I feel. They feel strongly about decisions like this and I feel like I owe it to them鈥� the people in this city who want to see the cost of living in the city go down,鈥� he said.

Grout said she was conflicted on the proposal and wondered if there were other ways to put more money into the city鈥檚 pockets. She said the current budget 鈥渟hould be enough to run the city.鈥�

鈥淲e need to live within our means鈥� with the budget we are given. I have to do that at home,鈥� Grout said. She pointed to other costs going up for residents, like property taxes, solid waste fees and rising car registrations.

鈥淚t鈥檚 not fair to continually ask people for more and more,鈥� she said. 鈥淚 don鈥檛 think this is the right time.鈥�

Pe帽a said it was 鈥渃ourageous鈥� of Bassan to bring the proposal back to the table, adding it had 鈥渘othing to do with the pool.鈥� Pe帽a questioned why residents shouldn鈥檛 be putting more money toward city services and workers.

鈥淭he citizens are the employers of our employees and I think it鈥檚 time we help our own employees have a better quality of life themselves,鈥� Pe帽a said.

Then, she said, the proposal could get some significant projects done in District 3. Pe帽a said her district was underserved compared to some of the others, which get more attention and economic opportunity.

鈥淎s a city we are struggling. I think we need to grow and if we do nothing, we have the same thing,鈥� she said. 鈥淚f we try to do something different, and build 10, 15 amazing projects in each of our districts, I think that really changes the trajectory for our city.鈥�