Regular Items 9.
Legal Committee
- Meeting Date:
- 07/23/2026
COMMITTEE:
Legal
CONTACT:
C. Josh Nairn-Mahan
CHAIR:
Will Cavin
ACTION REQUESTED:
Consider recommending approval of Resolution 26-XX: A Resolution to put a one-fourth of one percent local economic development act local option Gross Receipts Tax on the November 3, 2026 ballot.
BACKGROUND:
Initiated by: Councilor Cavin
New Mexico communities have the legal authority to provide public support for economic development through the Local Economic Development Act (LEDA), but most lack the capacity to do so consistently. LEDA provides a local option gross receipts tax (LEDA LOGRT), the revenue of which, upon voter approval, municipalities and counties dedicate to public support for qualifying entities furthering or implementing economic development plans and projects. Municipalities may adopt a LEDA LOGRT increment of up to one-fourth percent (1/4%, or 0.25%).
"Public support" includes the provision of: • Land, buildings or other infrastructure • New broadband infrastructure that does not serve a public facility • Public-works improvements essential to the location or expansion of a qualifying entity (THINK SITE READINESS) • Direct loans or grants for land, buildings or infrastructure • Technical assistance to cultural facilities • Loan guarantees securing the cost of land, buildings or infrastructure • Grants for public-works infrastructure improvements essential to the location or expansion of a qualifying entity (THINK SITE READINESS) • Grants or subsidies to cultural facilities • Land for a publicly held industrial park (THINK SITE READINESS) • Land for a publicly owned cultural facility • Construction of a building for use by a qualifying entity
"Qualifying entities" are: • Those that manufacture, process or assemble manufactured products or agricultural products • Commercial enterprises for storing, warehousing, distributing or selling products of agriculture, mining or industry • Restaurants and lodgers • Indian nations, tribes or pueblos or federally chartered tribal corporations • Telecommunications sales enterprises • Facilities for farmers’ markets • Metropolitan redevelopment project developers • Cultural facilities • Retail businesses o in municipalities with populations of 15,000 or less; or o in municipalities with populations of more than 15,000 if the project does not receive state backing; or o in a county’s unincorporated area
New Mexico communities have the legal authority to provide public support for economic development through the Local Economic Development Act (LEDA), but most lack the capacity to do so consistently. LEDA provides a local option gross receipts tax (LEDA LOGRT), the revenue of which, upon voter approval, municipalities and counties dedicate to public support for qualifying entities furthering or implementing economic development plans and projects. Municipalities may adopt a LEDA LOGRT increment of up to one-fourth percent (1/4%, or 0.25%).
"Public support" includes the provision of: • Land, buildings or other infrastructure • New broadband infrastructure that does not serve a public facility • Public-works improvements essential to the location or expansion of a qualifying entity (THINK SITE READINESS) • Direct loans or grants for land, buildings or infrastructure • Technical assistance to cultural facilities • Loan guarantees securing the cost of land, buildings or infrastructure • Grants for public-works infrastructure improvements essential to the location or expansion of a qualifying entity (THINK SITE READINESS) • Grants or subsidies to cultural facilities • Land for a publicly held industrial park (THINK SITE READINESS) • Land for a publicly owned cultural facility • Construction of a building for use by a qualifying entity
"Qualifying entities" are: • Those that manufacture, process or assemble manufactured products or agricultural products • Commercial enterprises for storing, warehousing, distributing or selling products of agriculture, mining or industry • Restaurants and lodgers • Indian nations, tribes or pueblos or federally chartered tribal corporations • Telecommunications sales enterprises • Facilities for farmers’ markets • Metropolitan redevelopment project developers • Cultural facilities • Retail businesses o in municipalities with populations of 15,000 or less; or o in municipalities with populations of more than 15,000 if the project does not receive state backing; or o in a county’s unincorporated area
FINANCIAL CONSIDERATION:
If implemented, this GRT would raise approximately $4,500,000.00 based on FY 26 receipts.
LEGAL REVIEW:
The City Attorney has reviewed this item.
BOARD AND COMMITTEE ACTION:
Legal Committee will be the first to consider this item.
STAFF RECOMMENDATION:
Proceed as presented.