City councilors seek delay in county tax vote

Commission could make decision May 30; joint meeting tentatively set for June 15

A group of city councilors wants the Santa Fe County Commission to delay voting on gross receipts tax increases until after councilors and commissioners can discuss the proposed increases in mid-June, when the officials are tentatively set to meet to discuss a regional plan.

Also, Mayor Javier Gonzales said Tuesday that gross receipts taxes are already high in Santa Fe, although he stopped short of explicitly opposing the County Commission’s plan to increase the taxes countywide.

The commission is set to vote on two gross receipts tax increases at a May 30 meeting, and there is no sign that commissioners are willing to delay the vote until the meeting with councilors, which is tentatively set for June 15.

City Councilor Joseph Maestas has proposed a council resolution asking for a delay in the County Commission vote, saying the proposed gross receipts tax increases would make the tax rate within the city among the highest in New Mexico. The resolution has three co-sponsors on the council.

During budget hearings in the past few months, all five elected county commissioners have expressed support for raising gross receipts taxes, saying such increases are necessary to fill service gaps. They also have expressed concerns that state lawmakers and the governor may limit the authority of counties to impose such taxes.

County commissioners will hold public hearings May 30 on gross receipts tax increases that would bring in an estimated $6.9 million a year by levying an additional 19 cents in taxes on every $100 in sales.

Some of the new money would be dedicated to new public safety positions — including firefighters, sheriff ’s

deputies and jail officials — and to the expansion of county behavioral health care services.

Under the proposed gross receipts tax increases, the tax rate in unincorporated areas of the county would increase to 7.1875 percent from 7 percent. The tax collected on most business activity inside Santa Fe’s city limits would increase to 8.5 percent from 8.3125 percent.

Gonzales commented publicly for the first time Tuesday on the commission’s proposals, saying in a statement that the gross receipts tax rates “in Santa Fe are high and government is already overly reliant on GRT as a source of funds, which is why I opposed increases when we solved the city deficit and won’t support them for the city in the future.”

“Our County Commissioners are excellent public servants and this is their call,” Gonzales said. “I’d urge the public to weigh in and I trust the Commission will make the decision they feel is best for Santa Fe.”

Matt Ross, the mayor’s spokesman, did not reply to a followup question asking to clarify whether Gonzales opposes the County Commission raising gross receipts taxes.

Santa Fe County Commissioner Robert Anaya said in a statement that commissioners have a responsibility to serve the needs of county residents.

Anaya said the county “did not weigh in or take a position opposing or supporting” the city’s plan to implement a tax on sugary beverages to fund early childhood education. “I can only request they in turn respect our process,” he said.

Nearly 58 percent of city voters rejected the 2-cent-per-ounce tax in a May 2 special election.

Maestas said in an interview that the “special election is an indication of the level of distaste that the voters of Santa Fe have for new taxes.”

He said he believes it’s his responsibility to ensure the city and county communicate about the impact of any tax increases and how the revenue from them would be used.

“If we’re going to continue doing things unilaterally that are going to impact one another, then why are we having these joint meetings?” Maestas said. “It seems these joint meetings are more ceremonial.”

Kristine Mihelcic, a county spokeswoman, said in an email that the three newly elected commissioners requested the joint meeting with councilors to discuss a regional plan.

“The tax was not originally an item to be discussed at the joint meeting, as mentioned yesterday the Agenda for the meeting has not been finalized,” she said.

One of those new commissioners, Ed Moreno, said he does not see the need for the commission to delay a vote on the tax increases until after the citycounty meeting. He pointed to uncertainly on the state level as the reason for disputes between counties and municipalities over raising gross receipts taxes.

“I think that this situation has always existed when the city imposes a tax, it affects the city; when the county imposes a tax, it affects everybody, not just the people who don’t live in the city,” he said. “And that’s the way it is. The situation that we’re in really goes back to what’s going to happen in the special session.”

The Legislature is scheduled to meet May 24 in special session to finish work on a government spending plan for the fiscal year beginning July 1.