Bernalillo County sales tax bumps higher starting Sat.
Hike should raise $30M a year; $10M earmarked for public safety agencies
Purchases made in Bernalillo County will get more expensive starting Saturday, as a gross-receipts tax hike goes into effect.
The tax will go from 7.3 to 7.5 percent in Albuquerque, and from 6.2 to 6.4 percent in the unincorporated areas of Bernalillo County. The increase will add 18.75 cents to the cost of a $100 purchase.
The increase, approved by Bernalillo County commissioners in March, is expected to generate $30 million a year. About $10 milion of that will go to public safety agencies in the county.
A gross-receipts tax, which is similar to a sales tax, is tacked onto most goods and services purchased. The increase of three-sixteenths of 1 cent did not require approval from voters.
Steve Hamlin, co-owner of Hip Stitch, a local fabric and sewing store, said he will absorb the extra charge rather than pass it on to his customers.
“We charge in increments and at $12 a quarter yard, it’s hard to charge an extra fraction of a penny,” he said. “We will just absorb it and pass the savings to the customer because this is a fairly competitive market.”
Though the increase does mean higher prices, some small operations are in favor of it.
“For me personally, this could be a good thing,” said Daniel Spanogle, owner of Lumen Mind Body Float in the university area. “If it supports infrastructure, it allows people to get out more easily and spend.”
Dana Koller, owner of Kaktus Brewing, said although the tax will not hurt his business, he’s not in favor of it.
“It’s just a Band-Aid,” he said. “We keep raising taxes to fix things, but nothing ever gets fixed.” Koller said. He said he also was concerned that raising taxes will hurt the state’s already “stagnant” economy.
County Manager Julie Morgas Baca told county commissioners last winter the increase was needed to stabilize county operations. She said the county is dealing with increases that it has no control over — such things as insurance premiums. She said the county also needed to replace sheriff’s vehicles, heavy equipment, and it needs to cover the costs of software and hardware upgrades.