Gross receipts tax and hold harmless phase-out
At a glance
- What: Monthly report from the city economist on gross receipts tax, including the phase-out of state hold harmless payments that replaced revenue lost when food was removed from the tax.
- July 2026: Revenue fell 4.6%, mainly from a June 2025 state clerical error (a hold harmless payment deducted instead of paid, then repaid in July 2025) and the phase-out, now 21% and ending in FY30. Excluding hold harmless, all sectors grew 5.1%; construction declined. Cannabis was up 19%; August looked to be up about 1.5% (preliminary).
- Council concerns: Councilor Lewis called the construction numbers a sign of economic stagnation and suggested a joint Council and administration task force; the CAO pointed to IDO proposals and permitting improvements. Councilor Rogers asked for the dollar amounts of the food and medical hold harmless payments that will disappear.
Sources
- https://legistar.granicus.com/cabq/meetings/2026/10/3176_A_City_Council_26-10-19_Agenda.pdf
- https://www.youtube.com/watch?v=5744WNNCk4w
Discussion time
About 15 minutes across 1 meeting (from transcript timestamps; approximate).
| Meeting | Minutes |
|---|---|
| 2026-10-19 - City Council | 15 |
Log
- 2026-10-19 - City Council - Economist's report on July revenue; questions on the hold harmless error and phase-out and on the construction slump.
- 2026-08-03 - City Council - Presentation by City Economist Christine Boerner (introduced by Champine) on cannabis and gross receipts tax; see also Cannabis Retail Zoning Rules.