Two local government entities will be considering increasing their gross receipts taxes next week.
Both Rio Communities and Peralta city councils will be voting on proposed ordinances that could raise the gross receipts tax by .6125 percent — the maximum of percentage available without referendum.
The two municipalities current GRT is 7.1825 percent, and if the councilors vote to approve the increase, it will rise to 8.4250 percent, the same as that of Bosque Farms.
If approved, the GRT increase would take effect on July 1.
The city of Belen’s GRT is 8.1874 percent, Los Lunas is at 8.5500, and in the unincorporated county, it’s 6.7500.
Gross receipts are the total amount of money or other consideration received from the sale of certain goods or services. Although the GRT is imposed on businesses, it is common for a business to pass the cost onto the purchaser.
During the March 13 Rio Communities Council meeting, Stephanie Finch, the city’s chief financial officer and treasurer, told the council the proposed GRT increase will generate about $100,000 a year in revenue for the city.
Finch said the extra funding will be used to facilitate new, needed positions in Rio Communities.
“The city will be replacing the assistant clerk, finance clerk and the public works director positions with a full-time librarian and community program’s coordinator, and an administrative assistant and records clerk in the police department,” Finch said.
The city’s treasurer told the council the GRT increase would also allow for salary adjustments for the departments that will be losing an employee to carry the extra workload. The city will also add an extra five hours a week for its janitor, and an extra 12.5 hours a week for the court clerk, a position that will remain part-time.
According to Rio Communities records, the city accrued more than $663,351 in gross receipts taxes in the 2021-22 fiscal year, and $531,960 so far since July 2022.
Rio Communities councilors will consider increasing its GRT at its regular business meeting scheduled at 6 p.m., Monday, March 27.
According to the draft ordinance posted on the town of Peralta website, revenue from the proposed GRT increase will go to the town’s general fund use.
When contacted for details about the proposed GRT ordinance, Town Clerk Kori Taylor declined to comment.
There will be a public hearing at 6 p.m., Tuesday, March 28, when members of the community can comment on the proposed ordinance before the council makes a decision.
(VCNB reporter Felina Martinez contributed to this report.)