Los Alamos Council narrowly approves 0.625% gross receipts tax increase to shore up budget

The Los Alamos County Council voted on Oct. 28 to adopt two separate ordinances that together raise the county gross receipts tax (GRT) by 0.625 percentage points, increasing the combined local rate from 7.0625% to 7.6875%, effective July 1, 2026. Council members said the increment is needed to avoid projected multi‑million‑dollar deficits and to preserve bond capacity for planned capital projects.

Administrative Services Director Helen Peraglio told the council that gross receipts tax provides about 72% of the county’s general fund revenue and that recent lower taxable receipts produced a $13 million shortfall in FY25 and a projected additional $7 million shortfall for FY26. “Without action, we will see unsustainable deficits of roughly $16,000,000 to $20,000,000 beginning in FY ’27,” Peraglio said during the presentation.

Peraglio and staff described the increment as a two‑part technical necessity: a 0.6125% municipal component and a 0.0125% county component, adopted as separate ordinances because they come from different authorities. County staff said the additional revenue is intended to maintain core services, preserve recurring transfers for regional partners and affordable housing programs, and protect the county’s ability to issue debt for prioritized projects including a proposed broadband bond.

Public comment ran more than an hour. Opponents told the council that GRT is regressive and will hurt small businesses and residents on fixed incomes. Rick Neebel told the council, “GRT is a regressive tax. Very clearly, it’s a regressive tax. It’s inequitable.” Several business owners and the Chamber submitted survey results showing business opposition; one chamber summary said 33 of 45 responding businesses opposed the measure.

Supporters countered that without new revenue the county would be forced into deep cuts that would jeopardize public safety, transit, housing assistance and capital projects. Jacqueline Connolly, who identified herself as a White Rock resident, said the county’s low tax rate leaves little room to absorb a structural decline in receipts and argued the increment would preserve services and the county’s bond rating.

After the public hearing and debate, Councilor Haveman moved to adopt the municipal ordinance (Ordinance 7‑47, 0.6125%), seconded by Councilor Neill Clinton. That motion passed on roll call 6–1. Councilor Hahn moved to adopt the county ordinance (Ordinance 7‑48, 0.0125%), also seconded by Councilor Neill Clinton; that motion likewise passed 6–1. The transcript records the opposing votes for the two measures as noted in the record.

The council and staff stressed the increase will not affect untaxed categories such as groceries and that the new rate remains below many regional peers. Peraglio said Los Alamos would still have a lower GRT rate than Santa Fe and Taos even after the increment. The ordinance language sets the effective date as July 1, 2026, and staff noted the change must be implemented and communicated to the Taxation and Revenue Department in the months before that date.

Next steps: the ordinances were adopted and directed to be published. Staff said bond planning (including an introduced ordinance to authorize up to $40 million in GRT‑backed bonds for community broadband) and budget guidance for the FY27 cycle will proceed with the new revenue projection.

Vote records: Ordinance 7‑47 (0.6125%) passed 6–1 (mover: Councilor Haveman; second: Councilor Neill Clinton). Ordinance 7‑48 (0.0125%) passed 6–1 (mover: Councilor Hahn; second: Councilor Neill Clinton).