Politics
Las Cruces 2026 Budget Sets Property Tax Mill Levy at 19.8 for Residential Properties
Homeowners and businesses inside city limits will see the new levy applied to their assessed values beginning with the November billing cycle.
How we reported this
The Las Cruces City Council adopted the fiscal year 2026 budget on June 15, fixing the residential property tax mill levy at 19.8 mills. The rate applies to all parcels within the incorporated boundaries and determines the portion of each property's assessed value that goes to city operations.
State aid formulas approved during the New Mexico legislative session that ended in March reduced the general fund transfer to municipalities by 3 percent compared with the prior year. Local governments therefore recalculated their own levies to cover ongoing expenses for police, fire, streets and parks.
A house assessed at $200,000 will generate $3,960 in city property tax under the new levy. That amount funds a share of the $12.4 million allocated for street resurfacing on the 120 miles of roads maintained by the city public works department.
Effects on Daily Services
Residents will continue to receive weekly trash collection and access to the city's three public swimming pools without an increase in user fees this year. The budget also maintains current staffing levels at the Las Cruces Police Department, which operates 24 hours from its main station on South Valley Drive.
Policy analysts note that the 19.8 mill rate sits 1.4 mills below the average for New Mexico cities of similar population size. Albuquerque set its residential levy at 22.4 mills for the same period, while Rio Rancho set its rate at 18.9 mills.
Position Relative to Neighboring Jurisdictions
City budget documents released in June list total general fund revenue of $148 million, of which property taxes are projected to supply 41 percent. In comparison, property taxes make up 47 percent of Albuquerque's general fund and 38 percent of Rio Rancho's. These percentages determine how much each city relies on local owners versus state distributions or sales tax collections.
The new levy takes effect for tax statements mailed in November 2026. Property owners may request an assessment review through the Doña Ana County assessor's office before the final bills are calculated in October.