Albuquerque Gross Receipts Tax Revenue Rises 21.3 Percent in July 2021

Albuquerque recorded a 21.3 percent increase in gross receipts tax collections for July 2021 compared with the same month in 2020, according to the city's economic dashboard. The same month also posted a 4.6 percent gain over July 2019 levels.

City budget staff rely on these monthly figures to adjust spending plans and revenue forecasts. Gross receipts tax made up 66.4 percent of the General Fund and 35 percent of the full operating budget in fiscal year 2022, so shifts in the tax directly shape services from public safety to parks.

Gross Receipts Tax Trends

The city receives the tax two months after business activity occurs, so July receipts reflect May sales. For fiscal year 2021 the full-year unaudited growth reached 1.7 percent after an earlier forecast of a 3.4 percent decline. July 2021 marked the first month of fiscal year 2022 and showed the strongest single-month rebound to date.

State law changes effective in 2019 gave the city more flexibility in how it spends local-option portions of the tax. Officials continued to report revenue by historic categories even after the restrictions lifted, keeping separate tracks for public safety, hold-harmless, and infrastructure allocations.

Employment Picture

The Albuquerque metropolitan area unemployment rate fell from 6.9 percent in July to 5.9 percent in August. The national rate stood at 5.2 percent in July. City staff monitor these monthly numbers along with sector employment to refine revenue models that feed the five-year forecast.

Staff noted that early recovery months reflected pent-up demand and federal aid effects. They continue to compare actual collections against budgeted growth assumptions each month to decide whether adjustments are needed.

Residents can review the full dashboard and linked PDF reports on the city's finance site to follow ongoing updates to these indicators.