Albuquerque City Council Rejects Proposed Sales Tax Hike

Councilors debate merits of tax increase to fund city projects and worker raises

Mar. 17, 2026 at 6:03am

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The Albuquerque City Council voted down a proposed 0.4875% increase to the city's gross receipts tax (sales tax) after a lengthy debate. The measure was intended to generate around $140 million annually, with half going towards city worker raises and the other half for municipal projects. However, several amendments were introduced that altered the original proposal, leading the bill's sponsor to withdraw support.

Why it matters

The proposed tax increase was a contentious issue, with supporters arguing it would benefit city workers and fund important projects, while opponents claimed it would disproportionately burden low-income residents. The Council's rejection of the measure reflects the difficulty in balancing fiscal needs with concerns about the impact on the community.

The details

Councilors Brooke Bassan and Joaquín Baca introduced the original 0.4875% sales tax hike, which they said would amount to less than half a penny per dollar spent. Councilor Tammy Fieblekorn then proposed several amendments, including shifting more of the funds towards city worker raises and reducing the tax increase to 0.1275%. Bassan said these changes significantly altered the intent of the bill, and she could no longer support it. After over an hour of debate, the Council ultimately voted down the proposal.

  • The Albuquerque City Council debated the proposed sales tax increase on Monday, March 17, 2026.
  • The Council ultimately voted down the bill after the lengthy debate.

The players

Brooke Bassan

Albuquerque City Councilor who co-proposed the original 0.4875% sales tax increase.

Joaquín Baca

Albuquerque City Councilor who co-proposed the original 0.4875% sales tax increase.

Tammy Fieblekorn

Albuquerque City Councilor who introduced amendments to the sales tax proposal, including shifting more funds to worker raises and reducing the increase.

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What they’re saying

“If we don't keep the 50-50 split and if this package can't be a little something for everyone and not one thing for everyone, I will not be able to support it.”

— Brooke Bassan, Albuquerque City Councilor (KRQE)

The takeaway

The Albuquerque City Council's rejection of the proposed sales tax increase highlights the challenges municipalities face in balancing fiscal needs with concerns about the impact on lower-income residents. The debate underscores the importance of finding equitable solutions that address the community's priorities without unduly burdening vulnerable populations.