Los Alamos adopts 0.625 percentage-point gross receipts tax increase to shore up budget, fund projects

Los Alamos County voted Oct. 28 to increase the local gross receipts tax (GRT) by a combined 0.625 percentage points, a move county officials said is necessary to avoid multi‑million dollar deficits and preserve core services and planned capital projects.

The council approved two separate ordinances — the municipal portion (Ordinance 7-47, 0.6125%) and the county portion (Ordinance 7-48, 0.0125%) — at roll calls held during the meeting. The two measures together raise the county'wide rate from 7.0625% to 7.6875%, effective July 1, 2026. Both ordinances passed on 6-1 votes; Councilor Regor voted no on each measure.

Helen Peraglio, the county's administrative services director, told the council the county faces an immediate revenue shortfall. GRT accounts for roughly 72% of the general fund; Peraglio said recent receipts are down and the county's 10-year financial projection shows an unsustainable structural gap without additional revenue. "Without action, we will see unsustainable deficits of roughly $16,000,000 to $20,000,000 beginning in FY '27," she told the council during her presentation.

Public commenters were sharply divided. Opponents called the GRT increase regressive and urged greater budget cuts or legal challenges; several business owners and a chamber survey cited local opposition. Supporters said the increment is needed to maintain public safety, social services, affordable-housing programs and to fund planned infrastructure, including broadband. "This increase would still keep us very competitive with our neighbors," resident Jacqueline Connolly told councilors, urging a long‑term view.

Council members said the decision balanced multiple risks: service cuts, bond ratings and the county's ability to finance projects. Councilor Hammond framed the choice as one of stewardship, noting the county had planned for increases during prior budget cycles and that the proposed rate remains below many neighboring counties.

The council also introduced an ordinance (Ordinance 7-50) authorizing up to $40 million in gross receipts tax–backed revenue bonds to help finance a community broadband project; that ordinance was introduced for later consideration but not acted on in the meeting.

What the measures do - Municipal ordinance 7-47: raises the municipal portion by 0.6125 percentage points and was adopted 6-1. - County ordinance 7-48: raises the county portion by 0.0125 percentage points and was adopted 6-1.

Next steps The ordinances are scheduled to take effect July 1, 2026. County staff said the change must be finalized in time for tax administration and for use in the FY'27 budget guidance; the county will also need to manage the two months'in'arrears timing that accompanies GRT collections.

Quotes "Without action, we will see unsustainable deficits of roughly $16,000,000 to $20,000,000 beginning in FY '27," said Helen Peraglio, administrative services director.

"This increase would still keep us very competitive with our neighbors," resident Jacqueline Connolly said in public comment.

Ending note Councilors repeatedly said the decision was difficult but necessary to protect the county's services, preserve its ability to issue debt at reasonable rates and maintain recurring funding for priorities such as affordable housing, regional support and public safety.