McKinley County to Hold Public Hearing on Gross Receipts Tax Increase March 27

McKinley County commissioners are set to vote March 27 on a proposed 0.4375% gross receipts tax increase that financial advisors estimate would generate almost $5 million in additional annual revenue for the county.

The commission authorized public notice of the proposal at a special meeting March 10, setting the stage for a formal vote five days from now. The increase would raise the county's gross receipts tax rate from 6.5% to 6.94375%, applying to unincorporated McKinley County but excluding the City of Gallup and the Pueblo of Zuni.

Stifel, a Santa Fe-based public finance group hired by the county, presented the proposal to commissioners at the March 10 meeting. Stifel representatives also warned that the commission must act by the end of March for the higher rate to take effect in July, leaving little margin before the window closes.

The tight timeline drew scrutiny during the public comment period. Peter Campos, the new CEO of the Gallup/McKinley County Chamber of Commerce, questioned the timing of the proposal and asked why the county waited until three weeks before the deadline to bring the issue to the public rather than discussing it six or nine months ago.

County Manager Anthony Dimas pushed back, saying that staff and commissioners "worked on the proposal behind the scenes for months."

Several details of the proposal remain unresolved ahead of the March 27 vote. The source of the 6.94375% resulting rate requires clarification: adding the stated 0.4375% increase to the stated 6.5% baseline yields 6.9375%, a figure that differs from the rate reported by county advisors. The county has not publicly disclosed what specific programs or budget needs the nearly $5 million in projected revenue would fund, nor has Stifel's underlying revenue model been released publicly.

The March 27 meeting is open to the public.