Title
Incorporated County of Los Alamos Ordinance No. 748, An Ordinance Adopting a .0125% County Gross Receipts Tax, Being Effective July 1, 2026
Recommended Action
I move that Council adopt Incorporated County of Los Alamos Ordinance No. 748, An Ordinance Adopting a .0125% County Gross Receipts Tax, Being Effective July 1, 2026; I further move that, upon passage, the Ordinance be published in its entirety.
County Manager's Recommendation
The County Manager recommends that Council adopt Incorporated County of Los Alamos Ordinance No. 748.
Body
After a Gross Receipts Tax (GRT) and Financial Overview presented on September 30, 2025, Council provided the County Manager direction to return to Council with a 5/8ths or .625% GRT increase for introduction on 10/7/25, to be publicly heard on 10/28/25, and to become effective by July 1, 2026. The County has two sources of GRT that can be enacted, Municipal and Countywide. In order to adopt a 5/8th equivalent GRT increment, the County needs two ordinances, one from its remaining Municipal Authority (.6125%) and one for Countywide Authority (.0125%). This ordinance will enact unrestricted, non-referendum, countywide GRT in the amount of .0125%.
This ordinance is intended to be heard in conjunction with Ordinance No. 747 to provide the full 5/8th increment of GRT for adoption, but has to be heard separately due to the statutory authority to enact from the county portion separately.
Alternatives
Council could not adopt this gross receipts tax which would in turn create the need for immediate budget guidance and a recommendation from staff to not issue gross receipts tax revenue bonds for planned projects.
Fiscal and Staff Impact/Planned Item
This ordinance is a planned item that has been discussed at prior budget hearings along with Council direction to return with an Ordinance to enact a combined total of 5/8th or 0.625% increase in GRT. If approved by Council, imposition of 5/8ths or 0.625% GRT is expected to generate approximately $17 million annually and will assist in fiscal stewardship of facing a recent 14% decline in GRT revenue. GRT revenue makes up approximately 72% of the County's sources of income. Adoption of this .0125% GRT in conjunction with Ordinance no. 747 in the amount of .6125% provides for a positive long range financial projection over the next 10 years of operations, and provides the County with positive reserve targets.
Attachments
A - Ordinance No. 748 Adopting a .0125% Municipal Gross Receipts Tax
B - Publication Notice
C - September 30, 2025 GRT Financial Overview Presentation
D - GRT Ordinance Presentation