Under Albuquerque Mayor Tim Keller’s proposed $1.37 billion budget, the cost of a business license and some building permits would increase. The proposed increases are estimated to generate about $6 million in revenue from the city’s Planning Department, which oversees permitting, development reviews, code enforcement and more.
The proposed fiscal year 2025 budget for the Planning Department is $22.2 million — a $1.5 million (7.1%) increase over fiscal year 2024.
Proposed business license fees*
Multifamily (apartments, townhomes, rental communities)
- 4-50 units: $100
- 51-100 units: $200
- 101+ units: $500
Retail, industrial
- Up to 5,000 square feet: $100
- 5,001-10,000 square feet: $200
- 10,001+ square feet: $500
Miscellaneous categories
- Up to 1,000 square feet: $50
- 1,001 – 6,000 square feet: $100
- 6,001 – 12,000 square feet: $200
- 12,001+ square feet: $300
*The current cost to register a business is $35.
Source: Planning Department
Business owners currently register with the city to legally open and operate. In the proposed budget, the city is recommending a systematic change from a business registration system to a business licensing system based on different fee tiers. The current fee to register all businesses is $35.
Planning Department spokesperson Timothy Walsh said while the city is floating the change, no definitive decision has been made. He added that business registration fees have not increased since they have been under the purview of the Planning Department.
“This is still in the conceptual phase and the City will work closely with the [Small Business Regulatory Advisory Commission] on the best way to implement such a change if it were to take place,” Walsh said.
Proposed permit changes
Meanwhile, the city’s permit revenue is primarily generated by the construction industry through building permits.
“The proposed fee change to reroofing, electrical, plumbing and mechanical permits would increase by 100%,” Walsh said. “There are a variety of factors that are considered when calculating the cost of a permit.”
He said the last time such fees were increased was in 2009.
Permit processing and approval times vary widely depending on the project and are often a point of contention among builders. According to the Planning Department, in mid-fiscal year 2024, it took an average of 146 days for a commercial permit to be issued. For comparison, major commercial projects in Denver take an average of 35 days, while Tucson builders wait an average of 20 days for projects larger than 20,000 square feet.
HOW TO PARTICIPATE
WHEN: The next committee meeting to discuss the FY 2025 operating budget is at 5 p.m. on Thursday, May 9.
WHERE: Vincent E. Griego Chambers on the basement level of the Albuquerque Government Center.
HOW: Public commenters must sign up by 4 p.m. on the day of the meeting.
VIRTUAL: The meetings are broadcast on GOV-TV and the City Council’s YouTube channel.
Walsh said the proposed fee increases would help speed up the permitting process for Albuquerque builders.
“These proposed fee increases would support the staff needed to decrease plan review and inspection times,” he said.
Walsh said that while the department doesn’t have funding for third-party plan reviews — another way to speed up the process — its new $2.4 million online system should help. Texas-based Tyler Technologies’ software platform is expected to launch later this year to be used by developers and residents to apply for approvals and permits. It features electronic plan review access and can issue permits digitally.
“Planning (Department) staff have been training on and testing the Tyler system as we prepare to launch the software later this year,” Walsh said.
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