Tax revenues across the state are plummeting in the wake of the COVID-19 pandemic, and municipalities are struggling to plug holes in their budgets. For its part, Santa Fe expects a $46 million shortfall for fiscal year 2020, much of it stemming from an immense drop in revenue from the Gross Receipts Tax (GRT). Austerity measures like a spending freeze and the release of temporary employees along with tapping the city’s reserve funds still leaves Santa Fe officials with about $16.5 million unaccounted for.
Fiscal year 2021, which begins on July 1, looks even more dire; city officials are expecting a $100 million shortfall. There is another option for raising revenue, however. According to a study by the New Mexico Department of Finance and Administration (DFA) from 2018, Santa Fe charges less than half of what the state allows for property taxes.