Taxes going up? They could be

Raising taxes and fees can be the answer when governments need more money to conduct essential business. We’ve said so frequently in the case of the state of New Mexico, for example. But we also believe that government must count its pennies carefully, spend wisely and only raise taxes as a last resort.

That’s especially true when considering increases in the gross receipts tax rate, so essential in paying for the operations of state, county and city governments across New Mexico. At some point, shoppers will spend less because they get sticker shock at the cash register.

Right now, Santa Fe County is considering raising gross receipts taxes countywide, which would include residents of the city and any visitors who shop here. A commission vote on two gross receipts tax increases could happen as early May 30, and apparently officials believe increasing the tax rate is necessary to fill service gaps.

All five commissioners appear committed to finding more money to pay for public safety and mental health services; there’s nothing frivolous in the tax proposal. The money would be spent to hire new firefighters, deputies, emergency dispatchers and employees at the jail, expand the Community Services Department and help pay for a behavioral health crisis triage center to treat people with mental health and addiction problems.

Combined, the two gross receipts tax increases would mean that businesses or individuals would pay a total of 19 cents more on $100 worth of sales and services. That could raise some $6.9 million a year in additional revenue.

For residents living within city limits, this should be of particular interest. The city’s tax rate already is a robust 8.3125 percent; should Santa Fe County increase its portion, city residents would pay 8.5 percent on all goods and services. What’s more, such a high rate would make it difficult for city councilors to decide to raise taxes, should the need arise. (Cities and counties were given the ability to raise gross receipts taxes by as much as three-eighths of 1 percent to make up for revenues that vanished after the state phased out subsidies for funding lost after New Mexico stopped taxing food.)

While we support spending on public safety and understand that mental health services are needed, the county already is collecting 2 percent more in property tax revenue over the previous budget year — that’s the largest source of revenue for the county. Its portion of gross receipts tax revenue also appears to be up. In short, unlike so many other governments, Santa Fe County is not in deficit territory, making tax increases more a choice than a necessity at the current time.

But our opinion isn’t what matters. What is important is for county residents — both from incorporated and rural areas — to share their views before commissioners make a decision. Does the county need to raise its tax rate? Is now a good time, especially when the county is not facing shortfalls?

There’s an interim vote possible May 30, with a final budget set to be approved June 27. Public comment is scheduled to be taken at the May 30 meeting, and it seems that any vote on the matter should wait until commissioners have time to digest what citizens are saying. Otherwise, it could appear that commissioners have their minds made up before people speak.

Complicating matters is an upcoming joint meeting of the City Council and County Commission in June. Some from the city are backing a resolution from Councilor Joseph Maestas, who is asking commissioners to delay a tax vote until after the joint meeting. Such a delay would allow the city and county to discuss, for example, public safety needs and talk about who pays for what services. Perhaps a tax increase might not be necessary. It makes sense for public bodies to coordinate their actions.

It also makes sense for commissioners to wait to approve increases until they have time to consider the wishes of citizens, those who show up for public comment and those who write, call or send an email. We’re not sure the folks so angry about the idea of taxing sodas know the taxes they pay on most goods and services could be going up. Raising gross receipts taxes — even for the best of reasons — always needs to be the last resort.