The Las Cruces City Council held a meeting that discussed topics revolving around funding for redevelopment plans around the city.
The city council voted unanimously to approve several gross receipts tax baselines for increment financing.
Tax increment finance, or TIF, works by setting a baseline for how much tax revenue they get in an area. The city then invests in that area and as taxes increase due to higher economic activity, the city gets more tax revenue. A percentage of that increased tax revenue is then reinvested into the designated area.
The city voted to approve six baselines for different metropolitan redevelopment areas across the city including the El Paseo and South Solano MRA, West Picacho and Motel MRA, and Apodaca and Lift Up MRA.
Economic development coordinator with the city Blairre Flores said that this is not a tax increase but rather captures future growth.
“TIF does not increase taxes. Second, it does not take existing tax revenue from other entities. It does capture tax growth above the base year from property tax and gross receipts tax,” Flores explained.
The TIF’s are expected to last for 20 years and capture 75% of increased tax revenue.
The council also approved various appointments to the airport board and transit board.
