CITY of ALBUQUERQUE
TWENTY FIFTH COUNCIL
COUNCIL BILL NO. C/S O-22-9 ENACTMENT NO. ________________________
SPONSORED BY: Isaac Benton, Pat Davis, Tammy Fiebelkorn
ORDINANCE
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C/S Amending Enactment No. O-2018-001 (Council Bill No. O-18-9) Which Imposed A Three Eighths Of One Percent (.375%) Gross Receipts Tax (Benton, Davis, Fiebelkorn)
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WHEREAS, on March 5, 2018 Albuquerque City Council adopted a three eighths of one percent (.375%) Gross Receipts Tax; and
WHEREAS, 60% of the tax was required to focus on public safety for fiscal years 2019 and 2020, but this requirement has since expired; and
WHEREAS, public safety remains one of the City’s most pressing challenges; and
WHEREAS, homelessness and housing insecurity are also two of the City’s largest challenges and addressing these issues can also address public safety; and
WHEREAS, a system gap analysis prepared for the City and County found that the city needs an additional 2,200 additional units of permanent supportive housing, more than doubling what is currently provided; and
WHEREAS, according to the 2021 annual Point-In-Time count there were 1,567 sheltered and unsheltered homeless people living in Albuquerque; and
WHEREAS, the ongoing COVID 19 pandemic exacerbates the need for addressing homelessness, as homeless individuals often have underlying medical conditions and are especially vulnerable to exposure due to limited options for isolation; and
WHEREAS, dedicating the .375% Gross Receipts Tax to addressing these challenges shows our values in action.
BE IT ORDAINED BY THE COUNCIL, THE GOVERNING BODY OF THE CITY OF ALBUQUERQUE:
SECTION 1. Sections 4-3-9-1 through 5, ROA 1994, are amended as followed:
“PART 9: [MUNICIPAL HOLD HARMLESS GROSS RECEIPTS TAX
§ 4-3-9-1 IMPOSITION OF TAX.
There is imposed on any person engaging in business in this municipality for the privilege of engaging in business in this municipality an excise tax equal to three eighths of one percent (.375%) of the gross receipts reported or required to be reported by the person pursuant to the New Mexico Gross Receipts and Compensating Tax Act as it now exists or as it may be amended. The tax imposed under this section is pursuant to the Municipal Local Option Gross Receipts Taxes Act as it now exists or as it may be amended and shall be known as the "municipal hold harmless gross receipts tax."
§ 4-3-9-2 GENERAL PROVISIONS.
This section hereby adopts by reference all definitions, exemptions and deductions contained in the Gross Receipts and Compensating Tax Act as it now exists or as it may be amended.
§ 4-3-9-3 SPECIFIC EXEMPTIONS.
No municipal hold harmless gross receipts tax shall be imposed on the gross receipts arising from:
(A) Transporting persons or property for hire by railroad, motor vehicle, air transportation or any other means from one point within the municipality to another point outside the municipality;
(B) A business located outside the boundaries of a municipality on land owned by that municipality for which a state gross receipts tax distribution is made pursuant to Section 7-1-6.4(C) NMSA 1978; or
(C) Direct broadcast satellite services.
§ 4-3-9-4 DEDICATION.
Revenue from the municipal hold harmless gross receipts tax will be used for the purposes listed below:
(A) In fiscal years 2019 and 2020, no less than 60% of the tax receipts shall be used for the cCity's Public Safety Budget Goal Priorities.
(B) 40% of the tax receipts shall be used for the City's Affordable Housing Goal Priorities.
(B) General municipal purposes.
§ 4-3-9-5 EFFECTIVE DATE.
The effective date of the municipal hold harmless gross receipts tax shall be July 1, 2018.
SECTION 2. COMPILATION. The ordinance amendment prescribed by SECTION 1 shall amend, be incorporated in, and be made part of the Revised Ordinances of Albuquerque, New Mexico 1994.
SECTION 3. EFFECTIVE DATE. This Ordinance shall take effect five days publication by title and general summary.