Otero County Economic Development Tax Question, Explained
Published 27 October 2026
Every Otero County ballot this year has one county question. It asks whether the county should add a countywide gross receipts tax of one-eighth of one percent (0.125%) under New Mexico's Local Economic Development Act, with the money dedicated to economic development plans and projects. That works out to 12.5 cents on every $100 of taxable sales.
Election Day is Tuesday, November 3, and early voting runs through Saturday, October 31. I am not telling anyone how to vote. I just want you to know what the question means before you see it on the page.
What exactly does the ballot question say?
Here is the wording from the county's 2026 General Election super sample ballot, listed under "County: Local Economic Development Act GRT Question":
"Shall the County of Otero impose a countywide one-eighth of one percent (0.125%, or 12.5 cents per $100 of taxable gross receipts) Local Economic Development Act local option gross receipts tax, with the revenue being dedicated to furthering or implementing economic development plans and projects, among which arts and cultural districts, cultural facilities and retail businesses would be qualifying uses?"
You vote for or against. The Otero County Board of Commissioners placed it on the ballot with Resolution 07-09-26/114-80, which the County Clerk's office received on July 16, 2026.
How much would it add to what I pay?
Gross receipts tax is charged to businesses on their sales, and most businesses pass it along on your receipt. The resolution says the tax would be paid by anyone doing business in the county, at 12.5 cents per $100 of taxable gross receipts.
Here is how the rates on the New Mexico Taxation and Revenue Department's gross receipts tax rate schedule for July 1, 2026 to June 30, 2027 would change if the question passes. I added 0.125% to each rate myself.
| Location | Rate now | Rate with the added 0.125% | Extra on a $100 purchase | Extra on a $1,000 purchase |
|---|---|---|---|---|
| Alamogordo | 8.1875% | 8.3125% | $0.125 | $1.25 |
| Tularosa | 7.6875% | 7.8125% | $0.125 | $1.25 |
| Cloudcroft | 7.8125% | 7.9375% | $0.125 | $1.25 |
| Rest of Otero County | 6.25% | 6.375% | $0.125 | $1.25 |
The resolution does not give a start date, so check with the county if it passes.
What could the money be used for?
The resolution lists what counts as public support under the Local Economic Development Act. That includes land, buildings and other infrastructure, new broadband infrastructure, public works improvements needed for a business to locate or expand here, direct loans or grants, loan guarantees, and grants or support for cultural facilities.
It also lists the kinds of businesses and projects that could qualify:
- Businesses that manufacture, process or assemble products, including agricultural products
- Businesses that store, warehouse, distribute or sell agricultural products
- Restaurants and lodging
- Farmers market facilities
- Metropolitan redevelopment projects
- Cultural facilities
- Retail businesses
No more than 10 percent of the money could go to promotion, administration or professional services tied to the county's economic development plan, according to the resolution.
How is this different from Alamogordo's LEDA money?
The City of Alamogordo already has its own Local Economic Development Act fund, which the City Commission has been talking about this fall. I wrote about that in Alamogordo's LEDA funds decision and the LEDA funds and blight cleanup vote.
This ballot question is separate. It is a county question, it would apply countywide, and the money would go toward the county's economic development plans and projects.
What does this mean for homeowners and people moving here?
This is a gross receipts tax, not a property tax, so it would not change your property tax bill. You would see it on taxable purchases and services, like the example table above.
Some voters will think about having a dedicated pot of money to bring in or grow employers, since jobs help keep a housing market steady. Others will think about the added cost on everyday purchases. Both are fair things to weigh, and the full ballot wording is worth reading before you vote.
If you have not decided where or when to vote, my guide on where to vote on Election Day in Otero County lists all 16 voting places, and New Mexico 2026 Ballot Questions for Otero County Voters covers the seven statewide questions.
Frequently Asked Questions
Is there a county tax question on the Otero County ballot in 2026?
Yes. Every Otero County ballot asks whether the county should impose a one-eighth of one percent Local Economic Development Act gross receipts tax.
How much is the proposed Otero County LEDA tax?
It is 0.125%, or 12.5 cents on every $100 of taxable gross receipts. On a $1,000 taxable purchase, that is $1.25.
What would the Otero County LEDA tax pay for?
The money would be dedicated to economic development plans and projects under New Mexico's Local Economic Development Act. The ballot names arts and cultural districts, cultural facilities and retail businesses among the qualifying uses.
Would the LEDA tax raise my property taxes?
No. It is a gross receipts tax on taxable business receipts, not a property tax.
Where can I see the exact ballot wording?
The Otero County Clerk posts a 2026 General Election super sample ballot on the county website. You can also look up your own sample ballot on the New Mexico Secretary of State's voter portal.
Ballot wording and details are from the Otero County Clerk's 2026 General Election super sample ballot and Otero County Resolution 07-09-26/114-80, and current tax rates are from the New Mexico Taxation and Revenue Department's July 1, 2026 rate schedule, as of 27 October 2026. This is general information, not tax or legal advice.