Taxes

A question on the minds of many voters I meet during this campaign is whether or not to vote in favor of the Edgewood bond questions on this year’s ballot.  It’s a difficult issue, especially in a bad economy, but there are a few important factors to consider.

The gross receipts tax (GRT) is the only source of funds we currently have available to pay for the basic services the town provides. Three million dollars a year flows in and flows right back out. The GRT has the disadvantage of being more volatile than property tax which makes planning for future needs difficult. There are also limitations on what can be done with GRT. It’s unlikely we will ever collect enough GRT to use it to borrow enough money to build the things many citizens have requested. In a town where roughly 70% of the population commutes to Albuquerque every day, further increasing the GRT to pay for these amenities could be bad for local business.

The Town of Edgewood does not currently levy a property tax.  We are one of the few towns in New Mexico, in fact, maybe the only town which does not. 

Without consulting voters, the Town Council can levy more than 7 mils of tax ; more than the 5.25 currently in our bond questions. I have opposed that, every time it has come up.

I oppose the town instituting a tax without consulting the voters first.

There are several reasons why I say this:

1. I believe that citizens should have a say in what they want their taxes applied to.

2. I believe a vote is needed to issue bonds and issuing bonds – basically, using the tax to borrow a larger sum of money – is the most stable, widely used method for getting things done.

3.  Money raised by a bonding vote cannot be suddenly diverted to a subsequent council’s pet project. Money raised in this way must be applied to what was in the bond question that voters approved and there are strict accounting and auditing procedures that make sure of it.

I have heard critics say, “once government starts taxing you, they never stop.”  That is true in a sense,  but i  it doesn’t mean that taxes will be constantly increasing, as the criticism implies.  One benefit of the proposed bond program is that it’s aimed at holding the tax rate steady over the long term.  The process of issuing bonds every few years will allow the town to move forward to build the things we want and need.  The reissuing of these bonds will not change the tax rate.  That will stay the same unless the voters authorize additional taxes.  To this point, Edgewood has relied on capital outlay from the legislature and grants to build the few things we have managed to build.  Those resources were always subject to limitations and the political climate.  Given the current state of the economy this is likely to continue to be true for quite some time.  In addition, to quote a wise politician I once knew, “why would anyone keep giving you money if you’re not willing to paddle your own canoe once in a while?”

Many people moved to Edgewood understanding that they would forgo certain amenities in return for lower taxes compared to places like Albuquerque.  Others want the town to make certain improvements and don’t mind paying a little bit to make it happen.  The important point is that the decision is made by the voters and not by a vote of council.  That’s one of several reasons that I want to remain on council; to make sure you have a voice.  I hope I will have your vote on March 2.