New Tax Burden Calculator Allows New Mexicans to Compare Local Tax Burdens among New Mexico Cities

(Albuquerque, New Mexico) New Mexico’s free market think tank, the Rio Grande Foundation, has made public on its website www.riograndefoundation.org the first known tool for comparing local tax burdens in New Mexico.

Using publicly-available property tax and gross receipts tax (GRT) data for each city with a population of 25,000 or more, the Rio Grande Foundation local tax burden calculator allows taxpayers to compare the two major taxes here in New Mexico that vary widely from place to place.

Rio Grande Foundation President Paul Gessing explained the importance of making this information available in an easy-to-use format, saying “GRT and property taxes are two of New Mexico’s three most important taxes levied on individuals (the other being income taxes). Since GRT and property tax rates vary significantly from place to place. We felt it is time to give taxpayers and entrepreneurs an idea how dramatically location decisions can impact what they pay the government.”

Gessing went on to say that, “For the average taxpayer, Santa Fe and Albuquerque have the heaviest tax burdens in New Mexico, while Hobbs and Carlsbad have the lowest burdens.” Of course, using our tax burden calculator will produce results tailored to individual taxpayers and their families.”

“Over time,” Gessing argued, “taxes are an important factor in driving relocation decisions of Americans and in spurring local economic development and wealth generation. This calculator will empower and encourage taxpayers to appreciate the extent to which local governments can vary in the demands they place on taxpayers.”

In concluding, Gessing pointed out that, “While this is a powerful tool, it is important to note that some comparisons are more realistic than others. For example, the median house in Santa Fe costs more than $400,000 while the median house in price in several New Mexico cities is less than $100,000.

These high valuations allow Santa Fe to levy the lowest property tax rate in the state. Thus, in order to maximize its effectiveness, ‘real-world’ data are important to making the tax burden calculator work.”

Full text of the Foundation's study of local tax burdens is available here.