Las Cruces to vote on GRT increase, but where will the money go?

To tax or not to tax?

That is the question that residents of Las Cruces face with a ballot measure to increase the rate of gross receipt taxes. 

Supporters of the measure say the increase will result in much-needed revenue for Las Cruces. City officials have said the money would be limited to public safety and infrastructure investments.

However, opponents say that Las Cruces officials should do a better job of using their money before resorting to increased taxes. 

The proposal, which the Las Cruces City Council approved and sent to voters over the summer, would raise the GRT rate by 0.032 percent. That translates to about 32 cents for every $100 spent on goods and services in Las Cruces. Residents pay about 8 cents per dollar (80 cents per $100) when accounting for city, county and state tax rates.  

If passed by voters, the tax raise would generate an estimated $11 million in recurring revenue.

The measure on the ballot reads: “Shall the City of Las Cruces impose a municipal gross receipts tax in the amount of three hundred twenty-thousands of one percent (0.3250%), the revenues of which shall be used for funding capital improvements and maintenance for public safety, streets, parks, and other public facilities and critical infrastructure?”

A summer survey of Las Cruces voters found that about 63 percent supported the measure as long as the money was used for public safety investments, street and traffic calming, park improvements and quality-of-life improvements.

Those are vague categories, however, and interviews conducted by the Las Cruces Bulletin show that the council is not entirely aligned with how the money should be spent. 

“We're not talking about raising GRT so we can raise salaries,” Councilor Johana Bencomo told the Bulletin. “That's not what this is. The GRT increase would go directly to capital improvements, meaning our streets, infrastructure, meaning our park infrastructure, meaning infrastructure for police and fire specifically.”

Councilor Bill Mattiace saw things differently, suggesting the money could be used for increased police salaries or expanded services like Project LIGHT. Mattiace, a former councilor and mayor who returned to the city council in 2024, said that money spent on anything that does not address crime was problematic. 

“The reality is that we had some issues, and Chief (Jeremy) Story, and (Fire Chief) Jason Smith and the city manager are making it a priority, and I believe this referendum, if it's passed, will make it even a greater priority,” Mattiace said, referring to crime. 

Still, Mattiace said he supported sending the measure to the voters. 

Mayor Eric Enriquez said he'd like to restrict the use of the money, but ensure the money was available for a wide variety of projects.

“The restricted fund would be for public safety and critical infrastructure. Again, public safety is roads, streets, lighting, police and fire. We always think public safety is responders, but we're looking for the best safety of the community and then critical infrastructures,” Enriquez said. “Again, it could be emergency sewer lines. It could be a number of things that come up.” 

The city declined the Bulletin’s request to interview City Manager Ikani Taumoepeau about the proposal.

“As staff, we are not able to take a position on a ballot measure, we can only educate about the process. Ikani said he would be more comfortable with allowing the elected officials to speak to the GRT increase,” said Mandy Guss, a city spokesperson, in an email to the Bulletin. “If you have questions about the process or need some data/details, let me know and we’d be happy to provide it.”

“This a really bad time to increase taxes,” wrote conservative activist Sarah Smith in a opinion column published in the Bulletin. “Many families are struggling to make ends meet due to the higher cost of living over the last few years, including higher prices for gas, housing, food and clothing. The city’s budget has increased by over 40 percent since 2019, yet they are still asking us for more money?”

Bulletin columnist Walt Rubel joined Smith in questioning the proposal. 

“Let’s start with this: The city budget will never be large enough to address all of its needs. And so, it’s not surprising that public support for a proposed increase in the gross receipts tax goes up when people learn how the money could be used,” said Rubel in a June column. 

While it's unclear what the voters will do, the public's overwhelming support of general obligation bonds is one indicator that the measure might pass.

In 2018 and again in 2022, Las Cruces voters approved bonds for public investment in new fire stations, affordable housing and a sports and recreation complex on the city's east mesa. Those measures passed, often with upwards of 60 percent of the vote.