Sales Tax Increase Under Consideration in Dona Ana County

Cities and counties in the land of enchantment are trying to restore revenue lost when lawmakers eliminated a tax on food and drugs.

For some time, the state decided to shield counties from that lost revenue with a so-called “hold harmless” payment.

Since that payment has been eliminated, state lawmakers gave counties and cities the power to increase their gross receipts tax as a way to raise more revenue.

Tuesday, ABC-7’s New Mexico Mobile Newsroom learned Dona Ana County is proposing an increase in its gross receipts tax.

According to county officials, a 3/8 of a percent increase would cost consumers about 38 cents per $100 dollars spent. It would raise $12 million in extra revenue.

Under a second proposal, a quarter of a percent increase would cost consumers 25 cents per $100 dollars spent and raise an extra $8 million.

A third proposal calls for a 1/8 of a percent increase would cost consumers nearly 13 cents per $100 dollars spent and help the county raise $4 million.

County Manager Julia Brown supports the 3/8 of a percent increase.

Brown said the money would help pay for new patrol units for the sheriff’s office, employee pay raises, and new infrastructure.

“in order to attract businesses, we’ve got to have infrastructure. In order to build the infrastructure, we have to have revenue,” Brown said.